During his visit to Michigan on April 30th, 2025, President Trump announced a new plan to modify existing auto tariffs. This change aims to boost U.S. manufacturing but experts are concerned about potential price increases and global market disruptions. 100 days into his second term, the focus shifted toward easing tariff burdens on the industry while promoting domestic production through policy incentives. 75% of American cars were manufactured domestically before Trump’s presidency, and he hopes this shift will continue to benefit the sector. Jamie Dimon of JPMorgan expressed worries about potential price hikes for consumers globally as a result of these tariffs. Notably, Elon Musk and Bill Ackman voiced their skepticism towards the policy’s approach, with many analysts concerned about the long-term impact of tariff changes on international trade. The move also follows existing 25% automobile import duties with previous tariffs adding layers to material costs like steel. However, Trump aims to reduce these layers through this policy aimed at stimulating domestic production and incentivizing manufacturers to invest in America. However, analysts caution that continuous tariff volatility can disrupt international supplier relationships and impact the U.S.’s alliances.