Automobile Tariffs a 'Pure Chaos' for Industry, Could Reach 25%, Wedbush Says

MT Newswires Live2025-04-01

The upcoming set of tariffs on Wednesday on all cars and parts made outside the US could reach as high as 25% and would cause "pure chaos" to the global auto industry, Wedbush said in a Monday note.

The Trump administration's tariffs aim at moving automobile production to the US, but will raise the prices of a typical car to a US consumer by $5,000 to $10,000, Wedbush analysts said.

Even US automakers that produce vehicles in the country have 40% to 50% of parts that come from abroad, the analysts said, adding that the concept of a US car with all US parts is a "fictional tale." They said it would take three years to move 10% of the auto supply chain to the US, costing hundreds of billions of dollars.

The tariffs will put major pressure on General Motors (GM), Tesla (TSLA), and other automobile makers and suppliers globally until the government gives more clarity, the analysts said.

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