US Tariff Updates

4.3.2025

Reciprocal Tariffs Announced Will Not Effect Previous Auto Tariffs

On Wednesday, April 2nd, Trump announced reciprocal tariffs on American trade partners with a minimum of 10% tariffs for countries. While these tariffs are called reciprocal, they will be approximately half of whatever the current tariff that country has tariffed on the United States. The automotive industry was mentioned multiple times in the announcement, but it has been clarified that automobiles and auto parts will not experience compounding tariffs between the reciprocal tariffs and the 25% auto tariffs that had previously been announced. Automobiles and auto parts will only be effected by the 25% tariff. 

From Auto News, "Autos are not part of his reciprocal tariff plan. They won't stack on top of the already announced 25 percent tariffs on vehicles imported into the U.S. market. That tariff starts April 3. The same tariff rate on major components such as engines and transmissions is expected to launch by May 3. Additionally, steel and aluminum are subject to an existing 25 percent import tax, but not the new reciprocal tariffs."

The 10% minimum reciprocal tariff is set to go into effect on April 5th, with the higher reciprocal tariffs on certain countries set to go into effect on April 9th. This includes a 20% tariff on imports from the EU, 24% on imports from Japan, and an additional 34% on top of the already established 20% tariff on China.

3.28.2025

Maple Hill's View of the New Auto Tariffs

The recent implementation of new vehicle tariffs has created significant shifts in the automotive industry, with varying impacts across manufacturers. As your trusted dealership, Maple Hill Auto Group wants to keep you informed about how these changes affect our diverse lineup of brands: Subaru, Hyundai, Genesis, Volkswagen, Audi, and Volvo.

Understanding the Tariff Structure

The new tariffs primarily target vehicles manufactured outside the United States, with reduced rates for those produced in Canada or Mexico. This tiered approach creates different levels of exposure across automotive brands, depending on where their vehicles are manufactured. The administration announced they will be watching manufacturers closely to ensure costs are not passed heavily to the consumer.

Subaru: Minimal Exposure

Among our brands, Subaru stands in the strongest position with approximately 56% of its U.S.-sold vehicles manufactured domestically at its Indiana plant. This is higher than GM, Toyota, and Nissan. This significant domestic production share means that popular models like the Outback, Legacy, Ascent, and Impreza are largely insulated from the full impact of the tariffs.

In a proactive move, Subaru has already begun discussions about potentially shifting production of the redesigned 2025 Forester to U.S. facilities, which would further reduce tariff exposure for one of their bestselling models.

Hyundai and Genesis: Accelerating U.S. Manufacturing Plans

Hyundai Motor Group, which encompasses both Hyundai and Genesis brands, has been expanding its U.S. manufacturing presence in recent years. Their new Georgia plant represents a significant investment in domestic production capabilities that will help mitigate tariff impacts in the coming years. Hyundai has also made a commitment to bringing a 5.8-billion-dollar steel manufacturing mill to the United States which may bring favorable deals to the table in the near future.

Volkswagen Group: Leveraging Global Resources

The Volkswagen Group, which includes both VW and Audi brands, benefits from being the second-largest consumer vehicle manufacturer globally. With their substantial capital resources, they have the flexibility to adapt to changing market conditions more readily than smaller manufacturers.

Approximately 21% of Volkswagen Group vehicles sold in the U.S. are already produced here, and including the Mexico plant, 44% of VW Group vehicles are produced in North America. This includes several popular models that will face no or reduced tariffs including the Volkswagen Atlas, Volkswagen Atlas Cross Sport, Volkswagen ID.4, Volkswagen Jetta, Volkswagen Taos, Volkswagen Tiguan, Audi Q5

This diverse production footprint provides Volkswagen Group with options to navigate the tariff landscape effectively.

Volvo: Strategic Adaptation

While Volvo currently faces the highest tariff exposure among our brands, there are bright spots in their lineup. The new all-electric EX90 SUV will be produced at Volvo's South Carolina plant, making it completely exempt from these tariffs. The South Carolina plant also produces the S60 and has additional capacity for production.

Industry-Wide Manufacturing Shifts

A key trend we're observing across all manufacturers is the strategic relocation of production for top-selling models to U.S.-based facilities. This approach allows brands to shield their most important vehicles from tariffs while maintaining competitive pricing.

This pattern of production shifting will likely accelerate, with manufacturers making calculated decisions about which models justify domestic production investments based on sales volumes and profit margins.

Our Commitment to Transparency

At Maple Hill Auto Group, we understand that these tariff changes may create questions about vehicle availability and pricing. Our manufacturing partners are providing us with daily updates on their strategic responses, and we pledge to keep you equally informed.

As production locations shift and manufacturers announce their plans, we'll continue to provide clear information about how these changes might affect your vehicle purchasing decisions. Our sales team is prepared to discuss specific models and help you navigate these changes with confidence.

While the automotive landscape continues to evolve under these new tariff conditions, we remain committed to providing you a positive, innovative, automotive ownership experience driven by integrity, sincerity and pride.