The import tax imposed by Donald Trump on foreign cars has negatively impacted the industry. While some major global car manufacturers are laying off workers, others have stopped exporting to the United States.

Trump’s tax measures first hit the global automotive sector. The United States announced a 25% additional import tax on imported cars on April 2. Companies with high exports to America were the first to be affected by the tax. Stellantis suspended operations in its production facilities in Canada and Mexico for a certain period and laid off 900 workers temporarily. British car manufacturer Land Rover, on the other hand, halted exports to America for a month. Nissan announced that it would not take orders from America for two of its models. These models by the Japanese manufacturer are produced in Mexico.

According to the leading German car magazine Automobilwoche, Audi sent a letter to its dealers informing them that all vehicles entering the U.S. after April 2 will be put on hold for now and not delivered to the dealers.

Dealers were asked to focus on reducing their stocks. It was noted that Audi currently has 37,000 cars in the U.S. that are currently not affected by the new tariffs.

VOLVO’S DECISION TO INCREASE PRODUCTION Swedish Volvo indicated a signal to increase production in America. They announced the consideration of producing more models at their factory in South Carolina. A similar move could be expected from the German manufacturer Mercedes. The company stated that new plans for the upcoming period are being formulated. CAR PRICES TO RISE It is estimated that there is around a 50-day stock of zero-mileage cars in America. It is suggested that prices could rise by 10% with the increase in tariffs. Therefore, there was a rush at car sales points over the weekend. According to an analysis, visitor traffic to brands increased by 30%.

While 16 million cars are sold in America annually, 8 million of them are imported cars.