auto dealer in black and red logo
MenuMENU
SearchSEARCH

OEM Group Protests Auto Tariffs

Alliance for Automotive Innovation says 25% duties would cut U.S. sales, raise vehicle prices.

April 2, 2025
OEM Group Protests Auto Tariffs

The trade group says auto manufacturing is “America’s largest manufacturing sector” already.

Credit:

Pexels/Tom Fisk

2 min to read


 

An automaker trade group says new U.S. trade tariffs on vehicles will but a damper on sales here and drive up prices for American consumers.

The Alliance for Automotive Innovation released a statement by President and CEO John Bozzella pointing out automakers’ current contributions to the U.S. economy and how the group believes new tariffs will actually weaken that impact.

“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports – all before any new manufacturing or jobs are created in this country,” Bozzella said.

President Donald Trump has said the U.S. will impose 25% tariffs on imported autos starting April 3 and on auto parts starting May 3, with the stated goal of strengthening the U.S. manufacturing base and national security.

But Bozzella pointed out that the complex supply and manufacturing web that automakers rely on “can’t be relocated or redirected overnight.”

The trade group called auto manufacturing “America’s largest manufacturing sector” already.

“Automakers, battery makers and parts suppliers have invested billions in American manufacturing and directly support communities and American workers in Michigan, Tennessee, South Carolina, Alabama, Mississippi, Kentucky, Ohio, West Virginia, Texas, Indiana, Illinois, Missouri, Georgia, New York and more,” Bozzella said.

Auto industry analysts say the promised tariffs would increase the already inflated price of new vehicles by thousands of dollars at a time that many consumers are struggling to afford today’s prices.

“Automotive facilities and global supply chains create American jobs, provide Americans with vehicle choice and the big one – support auto affordability in America,” Bozzella said.

LEARN MORE: Tariff Tangle Could Be Bad News for Sales

 

 

 

More Industry

Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
Photo of the facade of one of Mercedes' new city studios, with a vehicle displayed in the window
Industryby Hannah MitchellApril 13, 2026

Mercedes Opens ‘Studios’ in Select Cities

The shops help mark the automaker’s beginnings 140 years ago and are to designed to offer major urban center consumers ‘exclusive’ experiences.

Read More →
rendering of outside of Ford's World Headquarters South connection to the new World Headquarters complex
Industryby Lauren LawrenceApril 10, 2026

Ford Expands HQ Facility Renovations

The automaker's renovated Product Development Center, World Headquarters South, will be connected to the World Headquarters complex it opened in November.

Read More →
Ad Loading...
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Dealer Debrief 04/08/2026 with Lauren Lawrence. Auto Dealer Today logo
Industryby Lauren LawrenceApril 8, 2026

Dealer Debrief: Loan Terms & Service Drives

In this week's Dealer Debrief, host Lauren Lawrence covers extended loan terms, a service technician initiative, and the DOWC Fix it Forward Program.

Read More →
front of Porsche Des Moines car dealership
Industryby Lauren LawrenceApril 2, 2026

Auto Group Acquires Porsche Rooftop

Family-owned and operated Ed Morse Automotive Group has added Porsche Des Moines to its Iowa locations.

Read More →
Ad Loading...
Photo of Lexus of Warwick car dealership exterior
Industryby Hannah MitchellMarch 27, 2026

Lexus Dealership Changes Hands

The addition of a coveted brand, picked up from Penske Automotive, makes 15 total stores for a family-owned auto group in the Northeast.

Read More →
chart showing the quarterly electric vehicle market share from 2020-2025
Industryby Lauren LawrenceMarch 27, 2026

EV Sales Slide While Hybrids Climb

California, as usual, led the country in EV registrations in the fourth quarter, but the U.S. as a whole saw a 43% year-over-year volume decrease.

Read More →
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Ad Loading...
chart denoting a downward trend with a picture of a red electric vehicle and the Auto Dealer Today logo
Industryby Lauren LawrenceMarch 19, 2026

2026 EV Sales Start Slow

Most U.S. automakers have experienced a decline in electric-vehicle sales as global and North American sales numbers have dropped year-over-year, according to Benchmark Mineral Intelligence.

Read More →