As the United States imposes high tariffs on imported vehicles, automakers will soon have to make important decisions about whether to increase prices or reduce their margins, open or close operations, or both.
Beginning on April 3, the Trump administration will impose 25 percent tariffs on automobiles and auto parts that are not made in the United States.
However, all manufacturers will be affected because even American automakers buy parts from other countries and produce cars for the US market in neighboring Canada and Mexico.
Carmakers will be subject to additional expenses and disruption as a result of the tariffs, which the Bank of America predicts will apply to 7.3 million vehicles, or 8% of worldwide sales.
