They might be American companies, but not all of their cars are assembled in the U.S.
Transcript:
Kelsey Barberio: While consumers brace for the impact Donald Trump’s new auto tariffs will have on them, it’s already affecting U.S. automakers. The 25% tariff, set to kick in on April 3, will be placed on all cars shipped to the U.S.
But despite being American brands, Detroit’s big 3 automakers – Ford, General Motors, and Stellantis, don’t assemble all of their vehicles in the U.S. According to Barclays, through the first three quarters of 2024, nearly half of all GM cars sold in the states were assembled in Canada, Mexico and other countries. During that same period, Stellantis assembled 39% of the U.S.-sold cars elsewhere, while roughly one in five Ford vehicles took the same route.
Additionally, the new tariffs won’t just apply to foreign-made cars themselves, they’ll also apply to foreign-made car parts like engines and transmissions. Those tariffs are set to kick in on or before May 3.
Shares GM, Ford, and Stellantis are all down since President Trump’s announcement.
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