Tariffs for automobile parts entering the US come into effect

25% tax imports of engines, shows and other key parts of the car came into force in the United States, increasing pressure on an industry that is its way through a dense of policy changes.

The new tariff comes days after Donald Trump ease the measure In response to business concerns, but it does not eliminate it.

The US President said the new tariff, along with a 25% tax on car imports, came into force last month, was intended to encourage car manufacturers to carry out more production in the United States.

But analysts said any immediate expansion in the United States is likely to come to the expense of production elsewhere, while leading to higher business costs -and ultimately higher prices for customers.

For now, companies are protected from pain as Concerns about raising prices caused sales leapS

General Motors and Ford this week reported a double -digit sales growth, which continues in April.

But GM also warned it was expecting $ 5 billion (£ 3.7 billion) new costs this year as a result of tariffs, including approximately $ 2 billion dollars for cars he made to South Korea and US exports.

The leaders said they now expect prices to rise approximately 1%instead of falling, as before forecasting.

As a sign of shocks, other car companies, including Stelledis, manufacturer of Jeep, Fiat and Chrysler, withdrew financial guidance for the coming year, citing the smoothness of the situation.

“We remain the subject of extreme uncertainty,” Stellantis Chief Financial Officer Doug Osterman told analysts this week.

Nearly half of the vehicles sold in the United States last year were imported outside the country.

When Trump announced plans in March to hit cars and certain parts for vehicles with 25% rates, a message that came against other tariffs, she sent shock waves through the industry, attracting warnings for higher prices and risks to production and sales.

Since then, the President has softened his policies, especially with regard to Mexico and Canada – key parts of the industry supply chain due to decades of free trade between the three countries.

As is now, parts made in Mexico and Canada, in accordance with this free trade agreement, will be spared for the obligations. Initially, the employees had described this release as temporary, but after the customs instructions issued this week, analysts said it seemed likely to stick.

Trump this week also signed companies to face multiple tariffs in the same position, while creating a two -year system that manufacturers can use to reduce the obligations they have to pay in parts imported from other countries and used in disassembled vehicles.

The administration has also already stated that the companies that import cars made to Canada and Mexico will not be charged content rates created by the United States.

“The changes that have taken place over the last few days will make it easier … But even so it is still a dramatic change in the market,” says Stephanie Brinley, a major automotive analyst at S&P Global Mobility. “It’s still a big tariff.”

Managers in some companies have said they are investigating ways to increase production in the United States to mitigate new costs.

General Motors has said he has expanded the manufacture of trucks at his factory in Fort Wayne, Indiana, by about 50,000 as a result of the rates. This week, she also said she would reduce production in Canada.

Mercedes also said it had the flexibility of expanding its factory in Alabama.

Art Wheaton, director of labor research at Cornell University, said the US could see more such messages in the coming months, but he did not expect to see new factories soon, given the importance of this investment and how quickly the situation was changing.

“If I will decide for a lot of billion dollars … I wouldn’t do it on a market that is so unstable,” he said.

The administration said it was working on trade deals with key countries for the industry, including South Korea and Japan.

Trump can also change his policies if signs of economic damage begin to appear, said G -N -Whiton.

“Everything is pretty good now,” he said. “I don’t think the full impact of these tariffs has still hit.”