{"id":5192,"date":"2025-05-02T15:13:47","date_gmt":"2025-05-02T15:13:47","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/02\/gm-and-ford-ceos-say-new-auto-tariffs-wont-raise-prices-yet\/"},"modified":"2025-05-02T15:14:02","modified_gmt":"2025-05-02T15:14:02","slug":"gm-and-ford-ceos-say-new-auto-tariffs-wont-raise-prices-yet","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/02\/gm-and-ford-ceos-say-new-auto-tariffs-wont-raise-prices-yet\/","title":{"rendered":"GM and Ford CEOs Say New Auto Tariffs Won\u2019t Raise Prices\u2014Yet"},"content":{"rendered":"
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General Motors CEO Mary Barra says consumers won\u2019t eat tariff costs. Kayla Bartkowski\/Getty Images<\/span><\/figcaption><\/figure>\n

General Motors (GM)<\/a> and Ford (F)<\/a> say consumers shouldn\u2019t expect immediate price hikes on cars, even as the companies brace for the financial hit from President Trump\u2019s newly clarified tariffs on imported autos and parts. GM CEO Mary Barra<\/a> and Ford CEO Jim Farley<\/a> both signaled this week that while the levies will cost billions, their companies will absorb the initial impact\u2014at least for now.<\/p>\n

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After months of uncertainty, the Trump administration\u2019s updated tariff guidelines\u2014announced earlier this week\u2014offered some relief by capping auto-related tariffs at the highest applicable rate rather than stacking multiple levies. That shift helped GM calculate its projected tariff cost for the year: between $4 billion and $5 billion, said Barra in a shareholder letter yesterday (May 1).<\/p>\n

\u201cThe clarity we got was so important<\/a> because it allows us to make decisions for our footprint in the U.S. and North America,\u201d Barra told CNN yesterday. GM, which manufactures about half of its U.S.-sold vehicles abroad, will be impacted by both a 25 percent tariff on imported vehicles that took effect last month and an additional 25 percent tariff on auto parts set to begin May 3.<\/p>\n

To counter the tariff costs, GM plans to expand domestic production, including an additional 50,000 trucks annually at its Fort Wayne, Ind. plant. But Barra insisted the increased costs will not be passed on to consumers. \u201cPricing is going to stay at about the same level,\u201d she said, adding that GM will remain \u201cvery disciplined\u201d about offering pricing incentives.<\/p>\n

Ford has taken a different route by leveraging promotions. Last month, the company began extending its employee discount to all buyers on 2024 and 2025 models, resulting in a double-digit sales increase, according to Farley. \u201c\u201dOur inventories are shrinking at the dealers<\/a>,\u201d he told CNN yesterday, adding that the discount program will now continue through July.<\/p>\n

Farley, however, was more cautious about the long-term effect of tariffs. \u201cWe have a lot of parts that come from overseas that have multiple tariffs\u2014some of our parts went from 0 tariffs to 140 percent tariffs,\u201d he said. Trump\u2019s decision to eliminate levy stacking, he said, \u201cclarifies things\u201d but doesn\u2019t rule out eventual price increases.<\/p>\n

Ford manufactures roughly 80 percent of its U.S. vehicles domestically and is waiting to see how rivals respond to the tariffs before adjusting its pricing strategy. Farley said the company will reveal its estimated tariff costs next week when it reports earnings.<\/p>\n

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