Who Is Affected by These Tariffs?
Automotive manufacturing tariffs impact a wide range of stakeholders. Automakers, suppliers, logistics providers, and consumers all feel the effects of these policy changes. Companies that rely on imported parts or vehicles are particularly vulnerable to rising costs and supply chain disruptions. Dura | Shiloh collaborates with OEMs and Tier 1 suppliers to help them adapt and maintain a competitive edge in this shifting landscape.
What Are the Tariffs and What Do They Mean for the Industry?
Recent U.S. tariffs on automotive parts and vehicles have imposed duties as high as 25% on imports from select countries. These tariffs increase the cost of components sourced from overseas, delay shipments, and create uncertainty in supply chains. The result is higher production costs for manufacturers and potentially higher consumer prices. Industry analysis suggests the 25% tariff on imported vehicles will apply to nearly 80% of vehicles priced under $30,000 1. Overall, motor vehicle prices are expected to rise by 13.5% on average, translating to an additional $6,400 on the cost of an average new car 3.
When Did These Tariffs Take Effect?
The most recent round of automotive tariffs was announced in early 2024 and took effect throughout the year, with ongoing adjustments based on international trade negotiations. President Trump’s 25% tariffs on imported vehicles officially began in early April 2025, with additional tariffs on imported automotive components, including engines and transmissions, taking effect on May 3, 2025 8. Companies are reassessing their strategies to remain compliant and cost-effective in this evolving environment.
Where Are the Impacts Most Pronounced?
The effects of these tariffs are felt across the U.S. automotive industry, particularly at manufacturing plants that depend on global supply chains. Around 40% of cars sold in the United States in 2024 were imported, representing millions of vehicles now impacted by the tariffs 4. Key suppliers affected include Mexico, Japan, South Korea, Canada, and Germany, with Mexico leading in exports to the U.S. 6. Dura | Shiloh’s U.S. manufacturing facilities-located in Ohio, Tennessee, Michigan, and Indiana are strategically positioned to help customers localize production, reduce lead times, and minimize exposure to tariffs.
Why Were These Tariffs Imposed?
The tariffs were introduced to address trade imbalances, protect domestic industries, and encourage investment in U.S. manufacturing. While these policies aim to strengthen the American economy, they also create new challenges for companies that rely on international sourcing. The Trump administration has stated that the primary goal is to enhance domestic manufacturing, though studies show that the costs are often passed on to U.S. businesses and consumers 8.
Why U.S.-Based Manufacturing Offers a Solution
Choosing local manufacturing allows companies to avoid many of the complications caused by tariffs. Dura | Shiloh’s U.S. plants help businesses reduce import costs by sourcing locally, shorten delivery times with domestic shipping, and increase supply chain reliability by avoiding overseas disruptions. These benefits make it easier to manage the impact of automotive manufacturing tariffs.
Dura | Shiloh’s U.S. Manufacturing Facilities
Each location uses cutting-edge technology to deliver high-quality automotive components. All plants are certified to ISO 14001 and IATF 16949 standards, ensuring quality and consistency.
How Dura | Shiloh Helps You Overcome Tariff Challenges
With decades of combined expertise in the automotive industry, Dura | Shiloh delivers proven performance and reliability, local customer support for quick responses, and tariff relief through U.S.-based sourcing. We are here to help you reduce costs and strengthen your supply chain, no matter how automotive manufacturing tariffs evolve.
Don’t let automotive manufacturing tariffs slow you down. Partner with Dura | Shiloh and keep your business moving forward.
Citations:
1 Cox Automotive: New Auto Tariffs Are Now in Place, Driving the Industry into Uncharted Territory
3 Yale Budget Lab: The Fiscal, Economic, and Distributional Effects of 25% Auto Tariffs
4 Statista: Automotive Trade and Tariffs in the United States
6 Reuters: Automakers and Countries Most Vulnerable to US Auto Tariff Increase
8 NPR: How Automakers Are Responding to the 25% Car Tariffs So Far