Buick finally had cars Americans wanted to buy - then came tariffs

By Kalea Hall

DETROIT (Reuters) -General Motors’ Buick was connected a roll. Sales for the once-stodgy marque were up 39% successful the archetypal 4th with a refreshed lineup of compact SUVs including the Envision, Encore GX, and the Envista, its top-selling SUV for nether $30,000.

Then President Trump’s tariffs hit.

Buick’s 3 astir fashionable models are made extracurricular the U.S. The Envista and Encore GX are some built successful South Korea, portion the Envision SUV is made successful China.

That means each 3 are present taxable to stiff tariffs that could adhd thousands to sticker prices connected trader tons successful the U.S.

Buick’s South Korea-made models look a 27.5% tariff and the Envision retired of China faces a steep 47.5% interest with a 25% car tariff, a 20% China fentanyl tariff and a antecedently existing 2.5% car tax, according to a Barclays analysis.

It's atrocious quality for Buick dealers, which person been thrilled by caller models by the marque that has for years struggled to shingle disconnected a stereotype that whitethorn nary longer apply.

Analysts judge higher prices could stall Buick’s momentum, and adjacent endanger its survival.

"The latest question of Buick vehicles is affordable, are bully quality, are decent vehicles, and ruining that with a outgo disadvantage could upset Buick arsenic a going entity successful the U.S.," said Sam Fiorani, vice president of probe steadfast AutoForecast Solutions.

Buick declined to remark for this story.

RE-EVALUATING PORTFOLIOS

Trump's tariffs are pushing car executives to analyse their portfolios and measure if the costs are worthy it successful the agelong word to support importing immoderate foreign-made models. The tariffs, enacted earlier this month, person already led to immoderate changes.

GM moved to summation motortruck output astatine an Indiana works and Stellantis, shaper of Ram trucks and Jeeps, temporarily halted accumulation astatine 2 plants successful Mexico and successful Canada.

In a Tuesday, April 15 note, Barclays said it's assuming automakers "will nary longer merchantability vehicles that cannot beryllium sold profitably," including vehicles imported from China and Korea arsenic a effect of car tariffs.

For GM specifically, Barclays expects the automaker volition cease imports retired of Korea and China of astir 450,000 vehicles due to the fact that of tariffs.

Barclays is cutting its 2025 GM net earlier involvement and taxes estimates by 40% based connected little measurement and the gross tariff interaction of astir $9.5 billion. For its crosstown rival Ford Motor, Barclays expects a 60% simplification with a gross tariff interaction of astir $7 billion. Ford ships its Lincoln Nautilus from China.

Affordable vehicles similar the Envista and Chevrolet Trax, some built successful South Korea, basal to instrumentality the biggest deed from tariffs due to the fact that automakers often physique them extracurricular the U.S.