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Released March 28, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--President Donald Trump on Wednesday said imports of automobiles and auto parts are subject to a 25% tariff starting April 3. The president's latest trade maneuver is another effort to boost U.S. auto production and related project investment.
"The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts, if necessary," according to a White House fact sheet.
However, parts coming from Canada and Mexico that comply with the United States-Mexico-Canada Agreement (USMCA) will "remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content."
Trump said he had been in touch with the Big Three automakers--Stellantis (NYSE:STLA) (Amsterdam, Netherlands), Ford Motor Company (NYSE:F) (Dearborn, Michigan) and General Motors (NYSE:GM) (Detroit, Michigan). "If they have factories here, they're thrilled," he said. "If you don't have factories here, they're going to have to get going and build them."
The United Auto Workers Union (UAW) applauded the new tariffs: "With these tariffs, thousands of good-paying blue collar auto jobs could be brought back to working-class communities across the United States within a matter of months, simply by adding additional shifts or lines in a number of underutilized auto plants. ... Across a dozen Big Three auto plants that have seen major declines, production has fallen by 2 million units per year in the past decade."
Industrial Info is tracking about $150 billion worth of active and planned capital-spending automotive projects across the U.S., with about one-third of the activity attributed to the production of electric vehicle (EV) batteries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list.
Among the projects under construction is GM's $3.5 billion EV battery plant in New Carlisle, Indiana, which will begin ramping up to production of 30 gigawatt-hours (GWh) of batteries annually when completed in late 2027. Subscribers can learn more by viewing the project report.
Also underway is Envision AESC's (Japan) buildout of a roughly $2 billion battery-manufacturing gigafactory in Florence, South Carolina. The site is designed to produce at least 30 GWh worth of EV batteries annually--with first production expected in 2027. Subscribers can read more information on the grassroot and expansion projects.
Among the vehicle assembly projects under construction is Hyundai Motor Group's (Seoul, South Korea) $300 million expansion of its plant in Montgomery, Alabama. The project, which is expected to wrap up around the end of the year, entails installing new manufacturing equipment to support the assembly of hybrid and fully electric vehicles. Subscribers can learn more from a detailed project report.
Hyundai found itself in the news last week, celebrating the opening of its EV assembly and battery complex in Ellabell, Georgia--which is capable of producing up to 500,000 electric and hybrid vehicles annually--and announcing it would invest $21 billion in the U.S. from 2025 to 2028.
This includes $9 billion to reach an annual production capacity in the U.S. of 1.2 million vehicles and $6 billion to "enhance the company's parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains," according to a press release. Subscribers can learn more from detailed reports on the EV assembly and battery complex.
The company said its Hyundai Steel unit will construct a grassroot steel mill in Donaldsonville, Louisiana, to produce steel sheets for Hyundai and Kia models. News reports indicate construction is expected to begin in the third quarter of 2026, although Industrial Info believes the project has a low probability of kicking off at that time. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
"The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts, if necessary," according to a White House fact sheet.
However, parts coming from Canada and Mexico that comply with the United States-Mexico-Canada Agreement (USMCA) will "remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content."
Trump said he had been in touch with the Big Three automakers--Stellantis (NYSE:STLA) (Amsterdam, Netherlands), Ford Motor Company (NYSE:F) (Dearborn, Michigan) and General Motors (NYSE:GM) (Detroit, Michigan). "If they have factories here, they're thrilled," he said. "If you don't have factories here, they're going to have to get going and build them."
The United Auto Workers Union (UAW) applauded the new tariffs: "With these tariffs, thousands of good-paying blue collar auto jobs could be brought back to working-class communities across the United States within a matter of months, simply by adding additional shifts or lines in a number of underutilized auto plants. ... Across a dozen Big Three auto plants that have seen major declines, production has fallen by 2 million units per year in the past decade."
Industrial Info is tracking about $150 billion worth of active and planned capital-spending automotive projects across the U.S., with about one-third of the activity attributed to the production of electric vehicle (EV) batteries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a full list.
Among the projects under construction is GM's $3.5 billion EV battery plant in New Carlisle, Indiana, which will begin ramping up to production of 30 gigawatt-hours (GWh) of batteries annually when completed in late 2027. Subscribers can learn more by viewing the project report.
Also underway is Envision AESC's (Japan) buildout of a roughly $2 billion battery-manufacturing gigafactory in Florence, South Carolina. The site is designed to produce at least 30 GWh worth of EV batteries annually--with first production expected in 2027. Subscribers can read more information on the grassroot and expansion projects.
Among the vehicle assembly projects under construction is Hyundai Motor Group's (Seoul, South Korea) $300 million expansion of its plant in Montgomery, Alabama. The project, which is expected to wrap up around the end of the year, entails installing new manufacturing equipment to support the assembly of hybrid and fully electric vehicles. Subscribers can learn more from a detailed project report.
Hyundai found itself in the news last week, celebrating the opening of its EV assembly and battery complex in Ellabell, Georgia--which is capable of producing up to 500,000 electric and hybrid vehicles annually--and announcing it would invest $21 billion in the U.S. from 2025 to 2028.
This includes $9 billion to reach an annual production capacity in the U.S. of 1.2 million vehicles and $6 billion to "enhance the company's parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains," according to a press release. Subscribers can learn more from detailed reports on the EV assembly and battery complex.
The company said its Hyundai Steel unit will construct a grassroot steel mill in Donaldsonville, Louisiana, to produce steel sheets for Hyundai and Kia models. News reports indicate construction is expected to begin in the third quarter of 2026, although Industrial Info believes the project has a low probability of kicking off at that time. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
