By AFP
February 14, 2025
WASHINGTON — U.S. President Donald Trump said Friday that he planned to unveil tariffs on imported cars around April 2, adding to a cascade of levies he has threatened since taking office.
Trump’s statement did not specify whether the tariffs would apply to all auto imports.
Since his inauguration on January 20, Trump has taken aim at allies and adversaries alike with threats of fresh duties.
He has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.
Experts have warned it is often Americans who pay the tariffs on US imports -- not the foreign exporter.
Asked when he might unveil auto tariffs, Trump said, “Maybe around April 2.”
He did not provide further details on Friday.
About 50 per cent of the cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada and the other half from other major auto-producing countries.
This latter group is led by Japan, South Korea and Germany, with Britain, Italy and Sweden a source of a smaller volume of imports.
In recent days, Ford CEO Jim Farley has blasted a proposed Trump tariff of 25 per cent on Mexico and Canada, noting that it disadvantages US companies that have integrated their supply chains across North America under trade agreements, including the United States-Mexico-Canada Agreement (USMCA) negotiated in the first Trump administration.
On February 3, the White House suspended the tariffs for 30 days following moves from Canada and Mexico on border security and fentanyl policies.
Levies targeting the auto sector would come after the president recently firmed up plans for tariffs on all steel and aluminum imports beginning March 12.
He has previously promised tariffs on semiconductors, steel, oil and gas.
On Thursday, in a move broadening trade conflicts, Trump launched plans for “reciprocal tariffs” that could hit all US trading partners on a country-by-country basis.
The American Automotive Policy Council, which represents Detroit automakers General Motors, Ford and Stellantis, has called for Trump to drop proposed tariffs on Mexico and Canada.
“We support President Trump’s efforts to consider the entire global trade situation, including both tariff and non-tariff barriers,” said AAPC President Matt Blunt on Thursday in response to the announcement on reciprocal tariffs.
“In the meantime, Ford, GM, and Stellantis continue to believe that vehicles and auto parts that meet the USMCA requirements should not be subject to additional tariffs.”
The AAPC did not immediately respond to a request for comment on Friday.
WASHINGTON — U.S. President Donald Trump said Friday that he planned to unveil tariffs on imported cars around April 2, adding to a cascade of levies he has threatened since taking office.
Trump’s statement did not specify whether the tariffs would apply to all auto imports.
Since his inauguration on January 20, Trump has taken aim at allies and adversaries alike with threats of fresh duties.
He has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.
Experts have warned it is often Americans who pay the tariffs on US imports -- not the foreign exporter.
Asked when he might unveil auto tariffs, Trump said, “Maybe around April 2.”
He did not provide further details on Friday.
About 50 per cent of the cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada and the other half from other major auto-producing countries.
This latter group is led by Japan, South Korea and Germany, with Britain, Italy and Sweden a source of a smaller volume of imports.
In recent days, Ford CEO Jim Farley has blasted a proposed Trump tariff of 25 per cent on Mexico and Canada, noting that it disadvantages US companies that have integrated their supply chains across North America under trade agreements, including the United States-Mexico-Canada Agreement (USMCA) negotiated in the first Trump administration.
On February 3, the White House suspended the tariffs for 30 days following moves from Canada and Mexico on border security and fentanyl policies.
Levies targeting the auto sector would come after the president recently firmed up plans for tariffs on all steel and aluminum imports beginning March 12.
He has previously promised tariffs on semiconductors, steel, oil and gas.
On Thursday, in a move broadening trade conflicts, Trump launched plans for “reciprocal tariffs” that could hit all US trading partners on a country-by-country basis.
The American Automotive Policy Council, which represents Detroit automakers General Motors, Ford and Stellantis, has called for Trump to drop proposed tariffs on Mexico and Canada.
“We support President Trump’s efforts to consider the entire global trade situation, including both tariff and non-tariff barriers,” said AAPC President Matt Blunt on Thursday in response to the announcement on reciprocal tariffs.
“In the meantime, Ford, GM, and Stellantis continue to believe that vehicles and auto parts that meet the USMCA requirements should not be subject to additional tariffs.”
The AAPC did not immediately respond to a request for comment on Friday.
Auto parts maker Magna warns tariffs would be ‘disruptive’ but prepared to face them
February 14, 2025
A Magna logo is shown in Milton, Ont. on Saturday, March 24, 2023. Magna International Inc. is a Canadian parts manufacturer for automakers. THE CANADIAN PRESS/Staff
TORONTO — Auto parts maker Magna International Inc. is warning tariffs would have a negative impact on the auto industry, but says it’s ready to deal with what comes.
“I believe this is going to be disruptive,” said company chief executive Swamy Kotagiri Friday on an earnings call with analysts.
“We’re not looking forward to that but that muscle is there and we have to work through this.”
The auto sector is facing immense uncertainty as U.S. President Donald Trump threatens to impose blanket tariffs of 25 per cent on imports from Canada and Mexico into the country early next month. Auto parts would be particularly vulnerable because they can cross North American borders multiple times before ending up in a finished vehicle.
“It really is an industry issue that you have to solve holistically and not in isolation,” said Kotagiri.
“For a supplier to absorb this magnitude that they’re talking about is really unrealistic and unattainable.”
Magna has about 142 manufacturing facilities across Canada, the U.S. and Mexico and employs more than 73,000 workers across North America.
Kotagiri said the company has been having “significant” discussions with its customers and policymakers since December.
But he warned, “this is not a switch that can be turned on and off in the short term,” and could have long-term effects.
His comments came as Magna reported its latest quarterly results for the last three months of 2024.
The Aurora, Ont.-based manufacturer raised its dividend as it posted a fourth-quarter profit attributable to the company of US$203 million.
The company, which keeps its books in U.S. dollars, said it will now pay a quarterly dividend of 48.5 cents US per share, up from 47.5 cents US.
The increased payment came as Magna says its profit amounted to 71 cents US per diluted share for the quarter ended Dec. 31, down from US$271 million or 94 cents US per diluted share in the last three months of 2023.
On an adjusted basis, Magna said it earned US$1.69 per diluted share in its latest quarter, up from an adjusted profit of US$1.33 per diluted share a year earlier.
Sales for the fourth quarter increased two per cent to US$10.63 billion year-over-year.
Magna lowered its 2026 revenue outlook to between $40.5 billion and $42.6 billion from its previous forecast, which ranged between $48.8 billion to $51.2 billion. It also predicts a weaker first quarter of this year.
“Our outlook reflects the two per cent decline in weighted global vehicle production in 2025 and no growth over the 2024 to 2026 period,” said Patrick McCann, Magna’s chief financial officer.
An overall weaker macroeconomic picture drove the forecast lower, McCann said, while the company noted the outlook doesn’t take into account the effects of potential tariffs.
“The industry has been experiencing a high degree of volatility related to a number of factors including electric vehicle penetration rates, government policies, market share shifts, and the overall macro environment,” he told investors on the conference call.
“These have made forecasting more difficult than it has been in the past.”
Magna shares were trading 4.7 per cent lower at $53.62 on Friday afternoon.
This report by The Canadian Press was first published Feb. 14, 2025.
Ritika Dubey, The Canadian Press
This is a corrected story. In the headline and story of a previous version, the CEO was quoted as saying “destructive.” In fact, he said “disruptive.”
TORONTO — Auto parts maker Magna International Inc. is warning tariffs would have a negative impact on the auto industry, but says it’s ready to deal with what comes.
“I believe this is going to be disruptive,” said company chief executive Swamy Kotagiri Friday on an earnings call with analysts.
“We’re not looking forward to that but that muscle is there and we have to work through this.”
The auto sector is facing immense uncertainty as U.S. President Donald Trump threatens to impose blanket tariffs of 25 per cent on imports from Canada and Mexico into the country early next month. Auto parts would be particularly vulnerable because they can cross North American borders multiple times before ending up in a finished vehicle.
“It really is an industry issue that you have to solve holistically and not in isolation,” said Kotagiri.
“For a supplier to absorb this magnitude that they’re talking about is really unrealistic and unattainable.”
Magna has about 142 manufacturing facilities across Canada, the U.S. and Mexico and employs more than 73,000 workers across North America.
Kotagiri said the company has been having “significant” discussions with its customers and policymakers since December.
But he warned, “this is not a switch that can be turned on and off in the short term,” and could have long-term effects.
His comments came as Magna reported its latest quarterly results for the last three months of 2024.
The Aurora, Ont.-based manufacturer raised its dividend as it posted a fourth-quarter profit attributable to the company of US$203 million.
The company, which keeps its books in U.S. dollars, said it will now pay a quarterly dividend of 48.5 cents US per share, up from 47.5 cents US.
The increased payment came as Magna says its profit amounted to 71 cents US per diluted share for the quarter ended Dec. 31, down from US$271 million or 94 cents US per diluted share in the last three months of 2023.
On an adjusted basis, Magna said it earned US$1.69 per diluted share in its latest quarter, up from an adjusted profit of US$1.33 per diluted share a year earlier.
Sales for the fourth quarter increased two per cent to US$10.63 billion year-over-year.
Magna lowered its 2026 revenue outlook to between $40.5 billion and $42.6 billion from its previous forecast, which ranged between $48.8 billion to $51.2 billion. It also predicts a weaker first quarter of this year.
“Our outlook reflects the two per cent decline in weighted global vehicle production in 2025 and no growth over the 2024 to 2026 period,” said Patrick McCann, Magna’s chief financial officer.
An overall weaker macroeconomic picture drove the forecast lower, McCann said, while the company noted the outlook doesn’t take into account the effects of potential tariffs.
“The industry has been experiencing a high degree of volatility related to a number of factors including electric vehicle penetration rates, government policies, market share shifts, and the overall macro environment,” he told investors on the conference call.
“These have made forecasting more difficult than it has been in the past.”
Magna shares were trading 4.7 per cent lower at $53.62 on Friday afternoon.
This report by The Canadian Press was first published Feb. 14, 2025.
Ritika Dubey, The Canadian Press
This is a corrected story. In the headline and story of a previous version, the CEO was quoted as saying “destructive.” In fact, he said “disruptive.”
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