Twenty-five percent U.S. tariffs on vehicle imports took effect Thursday as the world reeled from separate reciprocal tariffs on imported goods.

Though the sweeping reciprocal tariffs won’t be stacked on top of the vehicle duties, the latter will be added to tariffs on steel and aluminum imports, as well as 25% tariffs on certain auto parts set to take effect on May 3.

Industry analysts have said they expect the tariffs to result in at least a 10% increase on already high new- and used-vehicle prices. Though many vehicles sold in the U.S. are assembled here, they’re made with parts from around the world.

Both U.S.-based and overseas automakers reacted to the vehicle tariffs in various ways. 

Ford extended employee vehicle discounts to the public – “You pay what we pay,” it says on its website. 

Jeep maker Stellantis said it will temporarily shut down a plant each in Canada and Mexico and lay off 900 U.S. workers as it metabolizes the tariffs and decides how to move forward.

Germany-based automaker Volkswagen, along with German cohort Mercedes, plus Volvo, Mazda and Hyundai, is among automakers most exposed to the new tariff. It imports about 80% of its U.S. sales units, according to S&P Global Mobility. 

The German Association of the Automobile Industry, issuing a statement calling for European unity along with openness to negotiation, said the auto tariffs “mark a fundamental turning point in trade policy.”

“It represents the US's departure from the rules-based global trading order - and thus a departure from the foundation for global value creation and corresponding growth and prosperity in many regions of the world,” the trade group said. “This is not America first; this is America alone.”

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