Trump’s 25% Auto Tariff Shakes Up Car Shipping Industry
The U.S. government is moving forward with a hefty 25% tariff on all foreign-made cars, and it’s already sending ripples through the car carrier industry. These new charges, set to kick in on April 2 for vehicles and later for auto parts, are expected to drive up costs for importers and slow down car sales.
Industry experts say the impact could be significant. Nearly half of the cars sold in the U.S. last year were imports, and with such a steep price hike, demand is likely to drop. That, in turn, could shrink the number of vehicles being shipped to the U.S., hitting car carrier companies hard.
Major exporters like Japan and South Korea sent over a million cars each to the U.S. last year, with the EU also sending nearly a million. Analysts predict that with the new tariffs, U.S. car imports could drop by about 25%, causing a 4-7% dip in global car shipping. That’s bad news for roll-on/roll-off (roro) shipping companies, which were already seeing demand cool off after booming business in 2022-2024.
The car shipping market has been on a downward trend recently, with increased fleet growth and slower demand. Now, with these tariffs set to shake things up even more, the industry is bracing for a rough ride.
