Sorry, But There’s Still A Car Tariff

President Trump shocked the world on Wednesday by announcing a 90-day pause on many of the “retaliatory” tariffs he’d imposed last week, but the new tariffs on automobiles are still in effect for now.

The administration confirmed the auto tariffs remain in place along with several other sectorial tariffs covering metals, pharmaceuticals and other goods.

The 25% tariff on assembled automobiles is on top of any that previously existed, including the 2.5% tariff that applied to cars imported from Europe, while pickup trucks already faced a 25% import levy.

A separate 25% tariff on imported auto parts is also in effect, but parts compliant with the USMCA-free trade agreement are currently exempt as the rules are sorted out. The White House previously suggested that cars assembled in Canada and Mexico could deduct the value of parts sourced from the U.S. from their tariff liability once the tariff takes hold.

Automakers have approached the uncertainty in a variety of ways. Hyundai, Genesis and Toyota have all said they will freeze MSRPs for several weeks, while Ford and Stellantis are offering employee discounts to all customers.

Jaguar Land Rover has suspended shipments of new vehicles to the U.S. as has Audi. Ferrari announced a 10% increase on the price of some models, while holding the line on others.