Trump’s 90-Day Tariff Pause, Will Not Include The Auto Industry

President Trump’s 90-day pause on many tariffs doesn’t apply to imported vehicles or auto parts — a big blow to automakers, especially to Stellantis and their U.S. operations. 

Despite the pause announced earlier today, the 25% tariff on imported cars and components — which officially took effect April 3 — remains fully in place. That’s especially concerning for companies like Stellantis, which imported about 40% of the vehicles it sold last year and uses international supply chains for a number of components on its vehicles assembled vehicles in the U.S. market.

The White House confirmed Wednesday that the pause on tariffs does not apply to “sectoral tariffs,” a category that includes vehicles, steel, aluminum, lumber, and pharmaceuticals. This means Stellantis and others must still navigate rising costs when importing materials or vehicles from outside the U.S., especially from non-USMCA (United States-Mexico-Canada Agreement) countries.

Stellantis also manufactures vehicles and imports several parts from multiple countries across Europe. The automaker imports vehicles for the Alfa Romeo, FIAT, and Maserati brands to the U.S., that also includes vehicles like the Dodge Hornet. With the new 25% tariff still on the table, the company could be forced to pass higher costs onto consumers or reduce profit margins — neither of which are good for business.

Stellantis hasn’t issued a fresh response to the news, but the American Automotive Policy Council — which represents Stellantis, Ford, and General Motors (GM) — previously voiced strong concerns about the negative impact of import tariffs on jobs, investment, and affordability.

Source: Detroit Free Press