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

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

, MT Newswires - 12:11 PM ET 3/31/2025 default

12:11 PM EDT, 03/31/2025 (MT Newswires) -- 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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