Report: Ongoing Volatility for U.S. Auto Industry

The fluid state of global tariffs continues to reshape the automotive landscape, according to the latest S&P Global Mobility outlook. The report incorporates new developments, including the doubling of Section 232 steel and aluminum tariffs to 50%, changes to how derivative parts are treated, and legal challenges to the White House’s tariff authority under the International Emergency Economic Powers Act (IEEPA). Key highlights:

• As of June 4, imported steel and aluminum tariffs doubled to 50%, with derivative parts now also facing added 10% IEEPA tariffs, raising manufacturing costs.
• A U.S. court has challenged the White House’s authority to impose broad IEEPA tariffs. While under appeal, tariffs remain in place, adding legal and policy uncertainty.
• Global light-vehicle production for 2025 has been revised upward by 750,000 units, with North American output rising by 300,000 units amid early trade-relief signs.
• U.S. vehicle inventory may fall to 2.0 million units by December. Automakers are holding off on broad price hikes but remain on alert as costs rise.
• A quota-based tariff model, like the one being explored with the United Kingdom, may shape future trade agreements, though sourcing changes remain limited for now.

Technologies: Management

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