The Alliance for Automotive Innovation has warned that new 25% tariffs on imports from Canada and Mexico imposed by President Donald Trump will significantly raise vehicle prices, according to Reuters.
"These tariffs will affect all automakers," said John Bozzella, CEO of the alliance, which represents almost all major automakers except Tesla. Its members include automakers such as General Motors, Ford, Toyota, Volkswagen, Hyundai and Stellantis.
Automakers argue that the long-established North American supply chain, in which some auto parts cross borders several times before final assembly, cannot be changed quickly.
"You just can't move the automotive manufacturing and supply chain overnight," Bozzella added, warning that tariffs are likely to increase costs for consumers before benefiting domestic jobs.
Other automakers, including Ford, have strongly opposed the tariffs, with the company's CEO Jim Farley warning that they could "blow a hole" in the industry.
