Tariffs Update: Automakers Deal With Ups And Downs

With President Trump’s automotive tariffs, the whole industry is dealing with what we’d characterize as a bit of a roller coaster ride. Some things are up, others are down, and change is everywhere. While some of these market trends were already in motion, it can be hard to parse out just how much is being impacted by the tariffs versus other economic inputs.

The US House of Representatives voted to end California’s Clean Air Act waiver.

For example, Ford saw car sales spike by 16 percent in April, something which many news organizations are attributing to panic shopping as consumers try getting deals before tariffs go into effect. That’s partially irrational, but it’s how some people are coping with the situation.

What’s really interesting is how the Blue Oval saw EV sales drop by 40 percent last month versus in April 2024. While some are trying to frame that as the effects of tariffs, we’ve been watching electric car sales deflate for several months, if not longer.

Another development which is connected to the tariffs comes from Stellantis, which is extending its Employee Pricing Plus Program through June 2. Other automakers have done similar promotions as a way to calm down nervous car buyers and to lure them to dealerships with the promise of good prices now as the future looks uncertain.

Porsche is one of the latest automakers to adjust its 2025 forecast, we guess since industry executives didn’t think Trump would make good on his campaign promises. The German company attributed its adjustment to “the slower ramp-up of electromobility” as well as the tariffs, which it projects will have negative effects for April and May. Interestingly, Porsche doesn’t calculate more negative effects beyond May – go figure.

As we covered before, Mercedes is moving the production of a popular model line to Alabama, thank to the tariffs. Aston Martin is scaling back how many cars it exports to the US, at least for now. GM is sounding the alarm it could lose up to $5 billion thanks to the tariffs. And Kia keeps racking up record sales figures as consumers flock to cheap cars.

Image via Porsche