Trump Imposes 25% Tariff on Imported Cars

Trump Imposes 25% Tariff on Imported Cars​

Higher Prices and Potential Production Cuts Expected​

President Donald Trump has announced a 25% tariff on all automobiles manufactured outside the United States, effective April 2. This marks a significant jump from the previous 2.5% rate and is part of his broader trade policy aimed at boosting domestic manufacturing.

Trump Imposes 25% Tariff on Imported Cars

President Donald Trump has announced a 25% tariff on all automobiles manufactured outside the United States, effective April 2. This marks a significant jump from the previous 2.5% rate and is part of his broader trade policy aimed at boosting domestic manufacturing.

moparinsiders.com

 

[scatpack_69]

Why do that? Stellantis would have to shell out tens of billions of dollars to move tooling, redo the factory, and revamp supply chains all to support two failed brands (Chrysler and Dodge).

It’s far more likely they will just let Chrysler and Dodge fade away and have them go the way of Plymouth as sales continue to plummet (especially with a 25% tariff).

Long term planning is impossible due to the chaos and incompetence of this administration — committing tens of billions to a pointless capital investment that may or may not pay off on tariffs that may or may not change to support two pointless dead brands with zero equity is a fool’s errand.

This is EASILY the most competent administration in my lifetime, and I’m almost 42. And extending well beyond that

They have goals set and are actively working to reach every single one that we hired them to do. It’s the most transparent, most honest, most committed groups of folks that I’ve ever seen.

They will not fail. And that’s a fact. Funny thing is, if they were the blue party you would be screaming how great they were.

 

[patfromigh]

When there’s a Republican president again in 2028, EVs will finally die - thankfully.

Killing off the mandates will save EVs. It's the mandates that must die, because we can't have the government dictating technology and declaring winners. If the government had treated computers like they do automobiles, I wouldn't be using my Chromebook to write this post. The PC would have remained an _86 DOS thing. Mopar Insiders instead would be a flyer printed on a mimeograph machine.

Once battery electric vehicles are freed from the fantasies of unelected bureaucrats, they will be free to develop into useful machines which serve the market niches they fit best.

 

[MotorMaven]

They can easily build V6 MHEVs, V8, four cylinders, whatever they want without repercussions - today. Because that’s what we voted for. Remember though - there is no free lunch with electrification.

The money makers in the modern era (2010-2020) have all had V6-V8s.

Au contraire. My local CDJR dealer has big stocks of V6 and V8 ‘22 and ‘23 HEMI and Pentastar Challengers, Chargers, Pacificas and Durangos on their lot. Nobody is buying.

V6 and V8 full sized cars and trucks are Grandpa Cars, and that shows up in the rapid aging of the buyer base for Chrysler and Dodge — as well as the plunging sales figures over the last decade or so.

Very few people who aren’t Boomers in their 70s are looking for pushrod V8 gas guzzlers. The sales numbers don’t lie.

 

[MotorMaven]

This is EASILY the most competent administration in my lifetime, and I’m almost 42. And extending well beyond that

So you’re a fan of Donald Trump for mostly emotional reasons. That’s fine, but it doesn’t invalidate the quantitative business challenges I laid out that you failed to address.

Business doesn’t run on partisan sentiments about how much you love Donald Trump or hate the Democrats. It runs on cost of capital, profitability, return on capital and cash flow — none of which exist for the “move the dying Mopar brands to the USA” demands that you and the administration are making.

Fox News fever dreams don’t pay the bills.

 

[cygnus]

Au contraire. My local CDJR dealer has big stocks of V6 and V8 ‘22 and ‘23 HEMI and Pentastar Challengers, Chargers, Pacificas and Durangos on their lot. Nobody is buying.

V6 and V8 full sized cars and trucks are Grandpa Cars, and that shows up in the rapid aging of the buyer base for Chrysler and Dodge — as well as the plunging sales figures over the last decade or so.

Very few people who aren’t Boomers in their 70s are looking for pushrod V8 gas guzzlers. The sales numbers don’t lie.

Because the dealers know they have a captive audience - they aren't making V8s anymore, and they subsequently price them as an 'limited edition' item. Once they're gone, they're gone. And when they come back, they'll be more expensive than what they are now because the Hemi is made in Mexico (for now).

And the V6s are probably more expensive in the same way I paid $39.7K for my WK2 Limited in 2018, which is now upper $40Ks today.

 

[cygnus]

So you’re a fan of Donald Trump for mostly emotional reasons. That’s fine, but it doesn’t invalidate the quantitative business challenges I laid out that you failed to address.

Business doesn’t run on partisan sentiments about how much you love Donald Trump or hate the Democrats. It runs on cost of capital, profitability, return on capital and cash flow — none of which exist for the “move the dying Mopar brands to the USA” demands that you and the administration are making.

Fox News fever dreams don’t pay the bills.

Billions of EV losses don't portend a viable business model. Tell me which powertrains / vehicles are subsequently viable in a future Stellantis portfolio.

Here's mine -

Jeep
Wrangler / Gladiator - Custom STLA Frame - V8, V6 MHEV, PHEV, REEV / Toledo
Grand Cherokee Five and Seven Passenger - STLA Large - V8, V6 MHEV, PHEV / Detroit
Cherokee - STLA Large FWD - GME-T4 / Belvidere
Compass - STLA Medium - GME-T4 / Brampton
Wagoneer - STLA Frame - V8, I6 MHEV, REEV / Warren

Dodge -
Charger / Challenger - STLA Large RWD - V8, I6 / Windsor
Durango - STLA Large RWD - V8, I6 / Detroit
STLA Large D-Segment FWD Crossover - - I6, GME-T4 / Belvidere


Ram 1500 - V8, V6 MHEV, REEV / SHAP

EVs -

Chrysler - STLA Large EV / Belvidere
Chrysler - Frame EV / Built at Warren
Chrysler - STLA Medium EV / Brampton

Scratch Recon EV and Ram 1500 EV. Build Wagoneer S EV Chrysler variant at Belvidere

 

[MotorMaven]

thousands of layoffs have occurred at Ford, GM, and Chrysler because - shocker here - you can’t lose billions on a bad bet without consequences

You’re right but you’re also wrong. Layoffs at Ford, GM and “Chrysler” have indeed happened because of bad bets. But those bets are mostly on the big obsolete gas guzzlers you keep trying to prop up.

As GM, Ford and Stellantis pull out of mainstream sedans, coupes, competitive crossovers, four cylinder affordable vehicles, and reliable everyday cars, the Koreans, Toyota, Honda and even Nissan are laughing all the way to the bank and thanking the Detroit 2.5 for the market share. Detroit’s incompetence and addiction to inefficient high margin grandpa cars are why Nissan will survive.

Hyundai is spending $22 billion to build and sell US built hybrids, plug in hybrids, and EVs in the USA. Great designs that are highly competitive. The Detroit dinosaurs have nothing comparable that can compete.

You can only try to maintain a high sales volume with boxy, badly handling, expensive, unreliable gas guzzlers for so long. Trying to put up 75-year-old base pushrod engine designs against modern hybrids and EVs in the pending era of $5/gallon gasoline will only hasten the end of the failing US brands — which have already largely pulled out of foreign markets where they also cannot compete.

The Detroit automakers don’t have any products that appeal to everyday consumers who need a basic and reliable vehicle.

The writing is on the wall.

 

[MotorMaven]

Because the dealers know they have a captive audience - they aren't making V8s anymore, and they subsequently price them as an 'limited edition' item.

Oh yes, I forgot about the irresistible charms of base level ‘22 V6 Charger SXTs that make them irresistible to desperate consumers.

 

[MotorMaven]

Billions of EV losses don't portend a viable business model.

Not sure where you’re pulling on the “billions in EV losses.” Those have only occurred at incompetent Detroit automakers and other legacy players, because they deployed their C players to build crap designs at high prices.

Detroit hasn’t tried to actually compete with anything out of Asia or Europe for years. It’s addicted to cranking out crap quality old truck designs with antique engine tech with high markups. They don’t even make mainstream products anymore. They’ve abandoned the fuel efficient mainstream volume segments because they’re not capable of engineering anything competitive in the space.

 

[MotorMaven]

Billions of EV losses don't portend a viable business model. Tell me which powertrains / vehicles are subsequently viable in a future Stellantis portfolio.

Here's mine -

Wrangler Gladiator - V8, V6
Charger / Challenger - V8, I6
Durango - V8, I6
Grand Cherokee - V8, V6,
Wagoneer - V8, I6, Series Hybrid
Ram 1500 - V8, I6, Series Hybrid
Cherokee - V6, GME-T4
Compass

All losers. None of them are reliable, fuel efficient or suited for mainstream consumers. That’s why sales are plummeting.

Stellantis has to make affordable, high value cars that meet the needs of everyday consumers for economy, durability and reliability at a price they can afford.

They aren’t. And the tariffs will just make it even harder to sell ten-year-old minivan designs and dead-on-arrival Challenger/Charger ICE grandpa cars.

 

[cygnus]

Not sure where you’re pulling on the “billions in EV losses.” Those have only occurred at incompetent Detroit automakers and other legacy players, because they deployed their C players to build crap designs at high prices.

Detroit hasn’t tried to actually compete with anything out of Asia or Europe for years. It’s addicted to cranking out crap quality old truck designs with antique engine tech with high markups. They don’t even make mainstream products anymore. They’ve abandoned the fuel efficient mainstream volume segments because they’re not capable of engineering anything competitive in the space.

At what point did FCA or Stellantis make money on "affordable, high value cars that meet the needs of everyday consumers for economy, durability and reliability at a price they can afford.", that weren't Wranglers/Gladiators, Grand Cherokees, Durangos, or Ram 1500s?

Seriously - tell me, what years and what vehicle models fit the criteria you've described and made profit for this company?

You're talking about / desiring something that has never happened with this company. You've got the wrong company - if you want that, go to Toyota.

I'm talking about repositioning the STLA product portfolio back to something that's happened - above average powertrains at decent prices. The problem, right now - prices. They're asking too much. You move those V8s down into the high $40Ks and lower $50Ks range, and watch how quickly they'll go.

 

[cygnus]

Oh yes, I forgot about the irresistible charms of base level ‘22 V6 Charger SXTs that make them irresistible to desperate consumers.

There are only 702 old L-platform 2023 SXT Chargers (in new condition) available nationwide at this time - 2023 Charger SXT Nationwide

Thanks for playing, lol - come on man, try harder.

 

[cygnus]

You’re right but you’re also wrong. Layoffs at Ford, GM and “Chrysler” have indeed happened because of bad bets. But those bets are mostly on the big obsolete gas guzzlers you keep trying to prop up.

As GM, Ford and Stellantis pull out of mainstream sedans, coupes, competitive crossovers, four cylinder affordable vehicles, and reliable everyday cars, the Koreans, Toyota, Honda and even Nissan are laughing all the way to the bank and thanking the Detroit 2.5 for the market share. Detroit’s incompetence and addiction to inefficient high margin grandpa cars are why Nissan will survive.

Hyundai is spending $22 billion to build and sell US built hybrids, plug in hybrids, and EVs in the USA. Great designs that are highly competitive. The Detroit dinosaurs have nothing comparable that can compete.

You can only try to maintain a high sales volume with boxy, badly handling, expensive, unreliable gas guzzlers for so long. Trying to put up 75-year-old base pushrod engine designs against modern hybrids and EVs in the pending era of $5/gallon gasoline will only hasten the end of the failing US brands — which have already largely pulled out of foreign markets where they also cannot compete.

The Detroit automakers don’t have any products that appeal to everyday consumers who need a basic and reliable vehicle.

The writing is on the wall.

Tell me - other than Wagoneer (which is close to breaking even), what vehicle program incurred losses?

Because it sure as hell wasn't the Charger, Challenger, Grand Cherokee, Wrangler, Gladiator, Durango, or Ram 1500 during their V6 and V8 powertrain years.

 

[ipa0628]

This is EASILY the most competent administration in my lifetime, and I’m almost 42. And extending well beyond that

They have goals set and are actively working to reach every single one that we hired them to do. It’s the most transparent, most honest, most committed groups of folks that I’ve ever seen.

They will not fail. And that’s a fact. Funny thing is, if they were the blue party you would be screaming how great they were.

What drugs are you taking?

 

[patfromigh]

What drugs are you taking?

I can't speak of most of our thread participants individually, because I only know of them through this forum. Many admit to taking something called a "Red Pill". A reading of their posts seems to support this.

As far as alcohol use, I might add there is very noticeable lack of Bud Lite drinkers in this group.