Detroit’s Big 3 will suffer due to new 25% tariffs

They might be American companies, but not all of their cars are assembled in the U.S.

Transcript

00:00While consumers brace for the impact Donald Trump's new auto tariffs will have on them,

00:04it's already affecting U.S. automakers.

00:06The 25% tariff set to kick in on April 3 will be placed on all cars shipped to the U.S.

00:12But despite being American brands, Detroit's big three automakers, Ford, General Motors,

00:16and Stellantis, don't assemble all of their vehicles in the U.S.

00:20According to Barclays, through the first three quarters of 2024, nearly half of all GM cars

00:24sold in the States were assembled in Canada, Mexico, and other countries.

00:29During that same period, Stellantis assembled 39% of the U.S. sold cars elsewhere, while

00:34roughly one in five Ford vehicles took the same route.

00:37Additionally, the new tariffs won't just apply to foreign-made cars themselves.

00:40They'll also apply to foreign-made car parts like engines and transmissions.

00:44Those tariffs are set to kick in on or before May 3.

00:47Shares of GM, Ford, and Stellantis are all down since President Trump's announcement.

00:52That'll do it for your daily briefing.

00:54From New York City, I'm Kelsea Barberio with The Street.

00:59Thanks for watching.