Automakers are making strategic decisions in response to the unexpected tariffs imposed by President Trump, ranging from price adjustments to operational changes and even temporary layoffs.

President Trump's tariff announcement on foreign-made vehicles went into effect on Wednesday with a 25% tariff on imported cars, and tariffs on auto parts are expected to follow on May 3 after the Commerce Department sets the appropriate rates.

Major automakers like GM, Ford, and Stellantis experienced a decline in their stock prices due to concerns about profitability, reduced demand, and the vulnerability of the auto parts industry in the global market.

Volkswagen from Germany is taking steps to address the impact of the tariffs by adding an "import fee" to affected vehicles and suspending rail shipments from Mexico, which is where they manufacture their Tiguan SUV.

Ford, based in Dearborn, Michigan, is taking a different approach by offering price cuts on most of its vehicles through expanded employee pricing in the US, potentially saving buyers up to $4,000 per vehicle on top of existing deals.

Opinions are divided on Ford's pricing strategy, with some viewing it as a way to benefit consumers while others see it as a short-term marketing tactic to attract buyers aligned with President Trump's policies.

In response to the tariffs, GM is currently withholding a definitive response, while Stellantis has confirmed that it will not raise prices but will halt production at certain plants in Mexico and Canada. Additionally, the company confirmed that 900 employees in the US will face temporary layoffs due to the tariffs.