Tariffs Add to Automaker Concerns About Higher Steel Costs

Published On Mar 12, 2025, 5:36 AM

President Trump has imposed new tariffs on all steel and aluminum imports, raising concerns for the auto industry as these levies are expected to increase production costs for cars in the U.S. The tariffs, set at 25%, could lead to a 16% increase in steel prices compared to last year. Automakers are already facing challenges, including fierce competition from Chinese companies and downturns in consumer spending. The failure of a proposed merger between Nippon Steel and U.S. Steel, which many executives believed could have preserved competition and lowered prices, is another disappointment for the industry as it navigates tough market conditions.