A few carmakers have closed factories, laid off workers or shifted production in response to the auto tariffs that took effect last week.
President Trump’s 25 percent tariffs on imported vehicles, which went into effect last week, are already sending tremors through the auto industry, prompting companies to stop shipping cars to the United States, shut down factories in Canada and Mexico and lay off workers in Michigan and other states.
Jaguar Land Rover, based in Britain, said it would temporarily stop exporting its luxury cars to the United States. Stellantis idled factories in Canada and Mexico that make Chrysler and Jeep vehicles and laid off 900 U.S. workers who supply those factories with engines and other parts.
Audi, the luxury division of Volkswagen, also paused exports of cars to the United States from Europe, telling dealers to sell whatever they still had on their lots.
If other carmakers make similar moves, the economic impact could be severe, leading to higher car prices and widespread layoffs. The tariffs on cars are among the first of several industry-specific levies that Mr. Trump has in his sights and could offer early clues about how businesses will respond to his trade policies, including whether they raise prices or increase manufacturing in the United States. The president has said he also wants to tax the imports of medicines and computer chips.
Applying the new tariff to imported cars could increase their cost to consumers by thousands of dollars, sharply reducing demand for those vehicles. For some Jaguar Land Rover or Audi models, the tariffs could amount to more than $20,000 per car.
While much of the initial impact of the tariffs has been disruptive, in at least one case Mr. Trump’s duties have had the intended effect of increasing production in the United States. General Motors said late last week that it would increase production of light trucks at a factory in Fort Wayne, Ind.