The tax imposed by Donald Trump on imported cars has negatively affected the industry. While some major global car manufacturers are laying off workers, others have halted exports to the United States.

The tax measures by Donald Trump initially hit the global automotive sector. On April 2nd, the United States announced an additional 25% import tax on imported cars. The companies exporting heavily to the United States were the first ones affected by the tax. Stellantis suspended its operations in production facilities in Canada and Mexico for a certain period of time, also temporarily laying off 900 workers. British car manufacturer Land Rover, on the other hand, suspended exports to America for a month. Nissan announced that it will not accept orders from America for two of its models. These models by the Japanese manufacturer are produced in Mexico.

According to the leading German car magazine Automobilwoche, Audi sent a letter to its dealerships stating that all vehicles entering the USA after April 2nd will be temporarily held and will not be delivered to the dealerships.

Dealers were asked to focus on reducing their inventories. It was stated that Audi currently has 37,000 cars in the USA that are not yet affected by the new tariffs.

INCREASE IN PRODUCTION DECISION BY VOLVO Swedish Volvo indicated a signal of increasing production in America. They announced the consideration of producing more models at their factory in South Carolina. A similar move could come from the German manufacturer Mercedes. The company stated that new period plans are being prepared.

CAR PRICES WILL RISE It is estimated that there are approximately 50 days’ worth of zero cars stock in America. It is stated that prices could increase by 10% with the rise in tariffs. Therefore, there was a rush at car dealerships over the weekend. According to an analysis, visitor traffic to brands increased by 30%.

While 16 million cars are sold in America annually, 8 million of them consist of imported vehicles.