Auto industry reacts to Trump tariffs, Honda boosts U.S. production investment, Tesla ramps up leasing push

Prefer to listen to this newsletter? Click here for the audio version.

Hey everyone. If you haven’t heard…

We launched a private online community for dealers and industry pros to connect, share ideas, and dive deeper into the Car Dealership Guy Podcast.

And so far—the discussions have been excellent. Click here to catch up or see how you can join the next live conversation.

The best part? It takes less than a minute to sign up.

— CDG

1. Trump’s new tariffs put the auto industry on high alert

The auto industry is caught in the middle of a high-stakes trade dispute as President Trump’s new tariffs take effect Tuesday. The plan imposes a 10% duty on Chinese imports and a steep 25% tariff on goods from Canada and Mexico.

The backlash: Industry leaders warn the tariffs could undermine billions invested in domestic manufacturing, increase vehicle costs, and lead to job losses.

• The American Automotive Policy Council, representing Ford, GM, and Stellantis, says these levies weaken efforts to strengthen North American supply chains.

• Meanwhile, Canada, Mexico, and China are planning retaliatory tariffs.

• And China is filing a lawsuit with the World Trade Organization.

Beyond trade—Trump links the tariffs to stopping illegal immigration and fentanyl trafficking, a stance winning support from Republican figures like Senators Lindsey Graham and Bernie Moreno … (Go deeper: 4 min. read)

2. Honda grows Ohio manufacturing investment to over $1 billion

Honda is doubling down on its U.S. manufacturing presence, announcing a $300 million investment in its Ohio auto plants. This brings the automaker’s total Ohio investment to $1 billion since 2022.

The goal? More production flexibility—retooling its Marysville, East Liberty, and Anna Engine plants to build EVs, hybrids, and gas-powered cars on the same line.

And that flexibility may be crucial. When Honda first committed to these upgrades in 2022, federal policies supported EV expansion. But with Trump vowing to scrap incentives like the $7,500 tax credit, the economics of EVs could change fast.

Bottom line: Honda isn’t retreating from EVs, but it’s making sure it has options—no matter what happens in Washington … (Go deeper: 3 min. read)

In today's automotive landscape, car buyers invest more time than ever in researching, considering, and comparing options. But for dealers, the challenge lies in pinpointing the audience ready to make a purchase.

Enter Premier by Edmunds.

Premier offers dealers a groundbreaking way to connect with in-market car shoppers precisely when, where, and how they prefer. With over 20 million monthly visits, Edmunds.com is the go-to destination for buyers seeking market insights, expert advice, and budget tools to make informed decisions.

Through Edmunds Premier, dealers gain access to this highly coveted audience. Simply list your new and used inventory on Edmunds, and watch as qualified, in-market traffic flows directly to your vehicle detail pages on your website.

Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.

3. Tesla leans into leasing with another round of price cuts

The Cybertruck AWD now leases for $749 a month—down 25% since November—while Model 3 leases have dropped as much as $50 per month.

The reason? Nearly half of all new EV transactions are leases, thanks to a federal tax credit loophole that makes leasing cheaper than buying outright. And Tesla is capitalizing on this trend, especially after missing Q4 earnings expectations. But while monthly payments are dropping, Tesla is quietly raising end-of-lease buyout prices.

The play? Tesla is making leases more attractive today while betting its vehicles will hold strong resale value down the road … (Go deeper: 2 min. read)

• Gas-powered Dodge Charger arrives this Summer, 3 new Jeeps coming too

• Stellantis names new heads of Peugeot, Jeep, DS brands as post-Tavares shake-up continues.

• Tesla investors pin hopes on cheaper EV model.

• All the EVs (and PHEVs) you can buy with 0% financing in February 2025.

• Cobots are helping ease worker shortages and improve efficiency. Here's how.

Thanks for reading everyone.

— CDG