As the 2025 U.S. election cycle ramps up, tariffs have reemerged as a flashpoint in trade discussions—especially in the auto sector. Donald Trump’s White House proposed 10 percent blanket import duty and 25 percent tariffs on vehicles imported from Mexico and Canada have sent ripples through the automotive industry. These policies are not just political posturing. They have real economic consequences for manufacturers, suppliers, and consumers alike.
In my role as CEO of MCQ Markets—a platform that offers fractional ownership of collector cars—I keep a close eye on these shifts, not just because they influence our niche, but because they reshape the entire investing and manufacturing landscape.
The Threat of Rising Costs
The auto industry has been down this road before. Back in 2018, the Trump administration’s steel and aluminum tariffs hit manufacturers hard, raising costs on essential raw materials almost overnight. Automakers scrambled to retool supply chains, absorb losses, or pass costs along to buyers. Fast forward to today, and we’re seeing familiar warning signs—only this time, the scope is even broader.
The globalized nature of modern auto manufacturing means few vehicles are built entirely in one country. Parts might be sourced from Europe, assembled in North America, and finished in Asia. Tariffs at any point along this supply chain inflate production costs. A Reuters report notes that automakers are already reevaluating their supply chain strategies to buffer against potential shocks.
For U.S. consumers, the implications are straightforward: higher sticker prices. A recent study by Yale estimates that a 25% tariff could add nearly $6,400 to the cost of an average imported vehicle. This ripple effect would be felt across dealerships, service centers, and even financing terms as consumers grapple with inflated costs.
Supply Chain Strain
Tariffs don’t just hit finished vehicles. They impact raw materials and components critical to EVs and hybrids—markets already grappling with material shortages. The Wall Street Journal highlights that U.S. automakers, particularly in Michigan and Kentucky, are especially vulnerable due to their reliance on cross-border supply chains.
Global Ramifications
At the heart of the issue is globalization itself. Modern car production is a complex, multinational operation. A vehicle might have its engine built in Germany, its transmission sourced from Japan, and final assembly in Mexico. This web of cross-border collaboration has kept costs competitive, but it also makes the industry incredibly vulnerable to trade disputes.
These tariffs could also provoke retaliatory measures from trade partners, adding further complexity. Trade groups warn of a chilling effect on innovation as resources are reallocated from R&D to compliance and cost mitigation. The 2018 steel and aluminum tariffs offer a cautionary tale, resulting in net job losses despite initial protective intentions.
Investor Sentiment
From an investment perspective, the auto sector is facing heightened volatility. Stocks of major automakers have already seen fluctuations tied to tariff news, and analysts estimate continued unpredictability until policy clarity emerges. Diversification strategies are becoming critical as investors seek to hedge against sector-specific risks.
While most of the industry grapples with these headwinds, one niche remains relatively insulated: the collector car market. Because these vehicles are typically already imported, privately held, and valued based on rarity and historical significance, not production volume, they are less exposed to immediate tariff impacts. Although a smaller segment of the broader automotive ecosystem, it offers a case study in how certain assets can weather policy-driven storms. And that’s where platforms like MCQ Markets come in.
By offering fractional ownership of rare collector vehicles through SEC-qualified offerings, we give investors exposure to these storied machines without the need for millions in upfront capital or the burdens of physical ownership. We’re not betting on supply chains—we’re preserving legacy, culture, and tangible value.
Looking Ahead
As we move deeper into 2025, the automotive industry is bracing for potential disruptions that could reshape everything from manufacturing to consumer purchasing habits. Whether tariffs are enacted in full or revised through negotiation, their ripple effects are set to redefine the landscape for years to come.
Investors, manufacturers, and consumers alike would do well to stay informed, agile, and prepared for a market in flux.
Related Stories:
Originally from Chicago, Curt Hopkins is the CEO of MCQ Markets, a fintech firm making high-value assets accessible and investable. He is also the founder of Consilium Ventures, a venture-building business focused on fintech, climate tech, and software.
