The American auto industry is in crisis as President Trump’s shocking 25% tariff on foreign auto imports threatens to unravel the sector. With costs skyrocketing—up to $12,000 per vehicle—manufacturers like Magna International face an impossible choice: absorb the financial hit or pass it on to already burdened consumers. The result? Potential factory closures, massive layoffs, and plummeting demand that could push automakers to the brink.
Swamy Kotagiri, CEO of Magna, warns that the tariff’s ripple effects will be devastating, disrupting a supply chain already crippled by semiconductor shortages, union strikes, and weak EV sales. Smaller suppliers, unable to adapt, teeter on the edge of bankruptcy, putting thousands of jobs at risk. Meanwhile, desperate consumers are rushing to buy cars before price hikes take full effect, creating a temporary sales surge that experts fear will be followed by a steep decline.
As companies scramble to shift production to the U.S. to sidestep tariffs, the question remains: Can automakers survive this brutal financial storm, or is the industry heading for an irreversible collapse?
https://since20230806.blogspot.com/2025/04/tariff-chaos-threatens-auto-industry.html
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