Earlier this week: President Donald Trump paused select tariffs and increased duties on China. Canada retaliates and imposes 25% tariffs on the U.S. autos. China imposes 84% tariffs on U.S. goods. The USA CAR Act proposes tax deductions for auto loan interest on U.S.-made autos. Audi freezes U.S. shipments after auto tariffs go into effect. Herb Chambers has agreed to pay $11.8 million to resolve PPP loan fraud allegations. Used car prices increase for the first time in a year and a half.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
1. Trump pauses new tariffs but exempts U.S. auto industry
President Donald Trump has sharply increased tariffs on Chinese imports to 125%, citing China’s “lack of respect” for global markets. The move comes just hours after Beijing announced an 84% tariff on U.S. goods, a direct response to Trump’s earlier 104% levy on Chinese products. However, tariffs on imported vehicles and auto parts will remain at 25%, as do those on aluminum and steel, despite widespread uncertainty earlier in the week. The announcement comes just hours after China retaliated with an 84% tariff on U.S. imports, following Trump’s earlier imposition of a 104% tariff on Chinese goods. Read More
2. Canada imposes 25% tariffs on U.S. vehicles amid trade tensions
On April 9, the Canadian government announced 25% tariffs on U.S.-built vehicles. The country’s retaliation marks a significant escalation in the trade standoff between the two nations, with the most significant impact on the automotive industry. The retaliatory measure is in response to what Canadian officials have called “unwarranted and unreasonable” trade actions on behalf of the United States. Read More
3. China hits U.S. imports with 84% tariff, vows to ‘fight to the end’ in escalating trade war
China announced Wednesday that it will raise tariffs on American goods to 84% starting Thursday, escalating its trade war with the U.S. and vowing to “fight to the end” in response to new economic measures imposed by President Donald Trump. The move comes days after Trump raised total tariffs on Chinese imports to 104%, including a 50% increase following what he called “Liberation Day” tariffs. Read More
4. New bill proposes tax deductions for auto loan interest on U.S.-made cars
A new proposal, the “United States Automobile Consumer Assistance and Relief Act (USA CAR Act),” is making waves in Washington. This bill, introduced by Sen. Bernie Moreno, would allow consumers to deduct the interest paid on auto loans for vehicles built in the U.S. The legislation, if passed, would help U.S. car buyers by reducing their tax burdens and making car ownership more affordable. Read More
5. Audi halts U.S. shipments after Trump’s 25% auto tariff takes effect
Volkswagen has frozen all Audi vehicle imports to the U.S. following President Donald Trump’s April 2 announcement of a 25% tariff on auto imports, the company confirmed Monday. Thousands of Audi models are now being held at U.S. ports while executives determine how the tariffs will impact operations. Read More
6. Herb Chambers settles $11.8M PPP loan fraud allegations
Herb Chambers, one of the most prominent auto dealers in the United States, along with several affiliated companies and a corporate officer, has agreed to pay $11.8 million to resolve Paycheck Protection Program (PPP) loan fraud allegations. The settlement was announced on April 9 by the U.S. Attorney’s Office in Massachusetts. Read More
7. Used car prices climb for the first time in over a year, iSeeCars report
Used car prices rose in March for the first time in nearly a year and a half, according to a new report from iSeeCars, signaling a potential shift in the market ahead of newly implemented tariffs that may further drive up both new and used vehicle costs. Average prices for 1- to 5-year-old used vehicles increased 1% year-over-year, or $317, in March 2025—the first annual gain since October 2022. The data, compiled before U.S. auto tariffs took effect on April 3, suggest the used car market is already trending upward after a prolonged stabilization period. Read More
8. Brian Benstock on tariffs and the road ahead for retail automotive
As global trade tensions escalate and economic pressures mount, automotive retailers must adapt and be resilient in the face of economic shifts. In today’s episode of CBT Now, host Jim Fitzpatrick sits down with Brian Benstock, partner GM and VP at Paragon Honda and Paragon Acura, to discuss how tariffs, interest rates, and inventory concerns are impacting the retail automotive sector. Watch the full segment here.
9. Navigating vehicle affordability challenges – Laura Perrotta | NJ CAR
With 25% tariffs on imported vehicles and parts now in effect, dealers across the country—and especially in New Jersey—are grappling with the potential fallout. In today’s episode of CBT Now, Laura Perrotta, president of the New Jersey Coalition of Automotive Retailers (NJ CAR), shared how these tariffs are already weighing on consumer affordability and what they could mean for new and used car markets in the months ahead. Watch the full segment here.
10. Dealers and manufacturers brace for changes as tariffs take effect – Kevin Tynan | The Presidio Group
In the wake of President Donald Trump’s 25% tariff on imported automobiles and auto parts, the automotive industry faces significant changes. Kevin Tynan, Director of Research at The Presidio Group, joins Jim Fitzpatrick on Inside Automotive to provide an expert analysis of what this means for car dealers, manufacturers, and the broader market. From price hikes to shifting supply chains, Tynan breaks down how these tariffs will impact both the industry’s short- and long-term trends. Watch the full segment here.
