DETROIT: General Motors' Buick was experiencing great success. Sales for the previously stagnant brand increased by 39 per cent in the first quarter, thanks to a revamped selection of compact SUVs like the Envision, Encore GX, and the Envista, which is its best-selling SUV priced below $30,000. Then, President Trump imposed tariffs. This implies that all three are currently facing high tariffs that could increase sticker prices on dealer lots in the U.S. by thousands. According to a Barclays analysis, Buick’s models produced in South Korea encounter a 27.5 per cent tariff, while the Envision manufactured in China is subjected to a hefty 47.5 per cent charge, which includes a 25 per cent auto tariff, a 20 per cent fentanyl tariff on China, and an existing 2.5 per cent auto tax.
It's unfortunate for Buick dealers, who have been excited by the latest models from a brand that has long battled a stereotype that may no longer be relevant. Experts think that increasing prices might hinder Buick's progress and potentially jeopardise its existence. "The newest lineup of Buick cars is budget-friendly, high in quality, and reasonable overall, and a cost disadvantage could jeopardise Buick's viability in the U.S.," stated Sam Fiorani, vice president of research company AutoForecast Solutions. Trump's tariffs are prompting auto executives to review their portfolios and determine if the long-term costs of continuing to import certain foreign-made models are justified. The tariffs, implemented earlier this month, have already resulted in certain modifications.
Buick sales rise, tariffs hurt
GM sought to boost truck production at an Indiana facility, while Stellantis, producer of Ram trucks and Jeeps, paused operations at two plants in Canada and Mexico. In a note dated Tuesday, April 15, Barclays stated that it expects automakers "to stop selling vehicles that cannot be sold at a profit," which includes vehicles brought in from China and Korea due to auto tariffs. Barclays anticipates that GM will stop importing around 450,000 vehicles from Korea and China due to tariffs. Barclays is reducing its 2025 GM earnings before interest and taxes projections by 40 per cent due to decreased volume and the gross tariff effect of approximately $9.5 billion. For its rival, Ford Motor Barclays anticipates a 60 per cent decrease with a gross tariff effect of approximately $7 billion. Ford exports its Lincoln Nautilus from China.
Inexpensive cars such as the Envista and Chevrolet Trax, which are manufactured in South Korea, are likely to face the greatest impact from tariffs since automakers frequently produce them abroad. The effect on budget-friendly cars is a widespread industry issue, as the average sales price of a new car in the U.S. is reported to be "over $48,000," according to research agency Cox Automotive, which anticipates that tariffs will lead to a 10 per cent to 15 per cent rise in costs for impacted models and an overall 5 per cent increase in prices for cars not impacted by the tariffs. Buick's range has been either updated or renewed in the past 20 months, resulting in a rise in sales. According to the company's sales data, the brand's annual sales rose by 61 per cent in 2023 and by 10 per cent in 2024.
The introduction of the Envista in 2023, a compact SUV with a starting price of $23,800, enhanced the brand's reputation. Last year, new styling was introduced for the Envision, a compact SUV priced from $36,500, increasing its appeal. “Envision is currently the top seller,” stated Jeff Laethem, GMC and Buick dealer based in Detroit. “After they applied the Envista design to it, that’s when it gained popularity.” Buick's market share in the U.S. increased from 0.8 per cent in 2022 to 1.1 per cent in 2024 and reached 1.6 per cent in the first quarter of 2025, as per information from Edmunds.com. Buick has “likely the strongest momentum they’ve experienced in decades,” stated Ivan Drury, insights director at research company Edmunds. “If this momentum decelerates, halts, or ceases, it’s not sealing the fate, but it genuinely damages something valuable … it diminishes the aspiration of reviving what was a crucial and historic name in the U.S. automobile sector.”
As of early April, Buick maintained a robust inventory at dealer locations, featuring 53 days' worth, surpassing the industry average of 47 days, as per Edmunds. As the global trade conflict persists, GM must also take into account the challenges it encounters in China, a key market for the Buick brand. GM and other international car manufacturers in China have been having difficulty securing a position in a market dominated by locally produced electric vehicles. According to data from Telemetry, an automotive advisory firm based in Detroit, Buick's sales in China have fallen by 65 per cent between 2020 and 2024. Due to tariffs and market instability in China, there is a "danger to the brand's survival," stated Sam Abuelsamid, vice president of insights at Telemetry.
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