Trump tariffs win as US car production ramps up

Donald Trump’s import tariffs have rocked the global economy but, among all the noise, the US President just had a major win.

A General Motors Co. pick-up truck is on the line in their Flint Assembly plant in Flint, Michigan. Picture: JEFF KOWALSKY / AFP

US President Donald Trump’s 25 per cent tariff on imported vehicles, enacted last week, has already prompted change to the automotive industry.

News Corp Australia reported this week several automakers were scrambling to adjust operations across borders.

Stellantis for example paused production at two key facilities outside the US, its Windsor, Ontario plant, which builds Chrysler mini-vans and the Dodge Charger Daytona EV, and its Toluca, Mexico plant, base of the Jeep Compass and Jeep Wagoneer S EV.

More than 900 workers at component plants in Indiana and Michigan were laid off due to halted demand from those cross-boarder assembly lines.

But it’s not all doom and gloom.

Several automakers are seizing the moment to ramp up their US production in a bid to sidestep the tariffs and protect their supply chains.

MORE:Shares tumble as Trump tariff reality bites

Several automakers are boosting US production in the hopes of unsetting an uncertainty imposed by President Trump’s recent tariffs. Picture: AFP

MORE: How Trump tariffs will impact Aus car prices

General Motors confirmed it will boost production of its high-volume Chevy Silverado and GMC Sierra pick-ups at its Fort Wayne, Indiana plant.

This facility primarily manufactures the Silverado 1500 and Sierra 1500 models.

GM plans to add several hundred temporary workers and implement overtime shifts.

A brief production hold is scheduled for April 22 to 25 to prepare for these changes.

Prior to this policy, GM produced the Silverado 1500 at both the Fort Wayne plant and Silao Assembly Plant in Mexico.

In 2024, more than 889,000 vehicles were assembled in Mexico, with 830,630 units exported, including 653,200 to the United States.

The Silao plant in Mexico was responsible for regular cab and crew cab versions of the Silverado 1500.

MORE:Massive car company stops all US imports

Stellantis has paused production at two key facilities. Picture: Getty Images

MORE:Trump drops Musk bombshell, Tesla rocked

Nissan also reversed a planned cut at its Smyrna, Tennessee plant and Mercedes-Benz is reportedly considering relocating assembly of an unspecific model to its Tuscaloosa, Alabama facility.

Honda has also moved forward its plans to produce the next-generation Civic Hybrid in Indiana instead of Mexico, and Hyundai is pushing ahead with a new steel mill in Louisiana to support vehicle production.

Other automakers like Infiniti have suspended production, and Volkswagen and Audi have paused shipments and imports to the US.

Some companies, like Ford and Stellantis have changed their strategy and are offering aggressive pricing tactics, including employee discounts, in the hopes of offsetting uncertainty and keeping showroom traffic flowing.

Originally published as Trump tariffs win as US car production ramps up