U.S. government tariff policies are impacting traditional American automakers, with Ford (F, Financial) and General Motors (GM) forced to raise prices in the U.S. market. Ford announced potential price increases for vehicles sold domestically if tariffs on imported cars and parts persist. This could start as early as July, as communicated to dealers in a recent memo.
Analysts highlight the challenge for automakers, who rely on a global supply chain. Vehicle parts often cross borders multiple times before final assembly, making it rare for cars to be entirely U.S.-made.
Buick, a GM brand, is also facing price hikes due to the tariffs. Buick's top three models, none of which are manufactured in the U.S., will see price increases as tariffs take effect. Forecasts suggest that GM's 2025 earnings expectations have been cut by 40%, with a projected $9.5 billion reduction in pre-tax profits due to tariffs.
Experts warn that Buick's price increases could threaten its survival, with industry analysts noting that the tariffs have severely impacted efforts to revitalize this historically significant American brand.
