Autos exempt from ‘reciprocal tariffs,’ VW issues short-term guidance for dealers, Tesla Q1 deliveries drop

Hey everyone. This week on the Car Dealership Guy Podcast, I sat down with Oliver Phillips, COO of Qmerit.

We tackled the #1 EV issue dealers aren’t addressing—and how to fix it. Plus, why Florida’s emerging as an EV hotspot, how EVs are cutting through political noise, and more.

Catch it on Spotify and Apple.

— CDG

Electrified vehicle demand has been quietly climbing:

GM: +94% YoY Hyundai: +38% Toyota: +39.6% Ford: +25.5%

Why?

Big discounts and strong lease deals still lingering.

Will be very interesting to watch if this holds post-tariffs.

(Data source: Public quarterly sales reports)

1. President Trump spares auto sector from reciprocal tariffs

President Trump’s latest move in the tariff saga includes a new bulk of “discounted” reciprocal tariffs.

What we know:

• Today: A 25% tariff on all foreign made-automobiles is in place—officially taking hold in the hours that followed the President’s speech yesterday in the Rose Garden.

• On April 5: A 10% baseline tariff will go into effect on all imports to the U.S., excluding Canada and Mexico.

• And on April 9: New reciprocal tariffs on goods from China (34%), the EU (20%), Japan (24%), and more are set to take hold.

Zooming out: Automobiles and auto parts are already subject to the 25% tariff—making them exempt from the reciprocal levies announced Wednesday. However, these taxes are expected to make waves across the automotive sector in some capacity.

(Go deeper: 4 min. read)

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2. Volkswagen maps out first steps in tariff response

VW just dropped its first round of tariff guidance for dealers in a memo shared yesterday.

According to the memo:

• VW is temporarily pausing rail shipments from Mexico—and holding vehicles at U.S. ports.

• Import Fees will be added to pricing for non-U.S.-made models, with full details coming mid-April.

• And unit allocations will be split into two phases: one for unaffected cars and the other for tariff-impacted vehicles.

Bottom line: VW is working to adapt quickly to the new tariffs—but many answers remain up in the air…

(Go deeper: 1 min. read)

3. Tesla Q1 deliveries fall 13%, missing analyst expectations

Tesla’s first-quarter struggles hint at a rougher road ahead.

The findings:

• Tesla’s deliveries totaled 336,000 units in Q1. That’s down 13% year over year—

• And joins growing investor concerns, with Tesla shares down more than 30% year-to-date.

• Worth noting, production was also down in the first three months of the year.

What this means: Tesla just posted a quarter described by one analyst as “a disaster on every metric.” And with operational pressure, market skepticism, and CEO Elon Musk’s leadership spotlight, it’s not clear the weight will lift anytime soon.

(Go deeper: 2 min. read)

• Stellantis pausing some Canadian, Mexican assembly plants as tariffs arrive

• Polestar 2 removed from Polestar’s US website alongside tariff announcement

• Auto giants surprisingly resilient as sweeping U.S. tariffs spare Canada and Mexico for now

• The hidden loser in Trump’s auto tariffs: domestic EV manufacturing

• Bennett Automotive Group sells Provincial Chrysler in Windsor, Ont.

Thanks for reading everyone.

— CDG

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