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Tariff Tuesday - Buick Killing it in China; Killed in the U.S.
Drew Dowdell posted an article in Opinion
Last week, April 15th, Tax Day for those of us in the U.S., we started a new series called Tariff Tuesday. President Trump's tariffs amount to one of the largest single increases in taxes on the American People in history. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, an increase per household of $1,900 to $7,600 per year. Trump's tariff policies change daily, sometimes hourly, so as always, this information is correct for at least 15 minutes after publication. Each week we document the effects the tariff have or could have on the U.S. automotive industry. Last week we made the case that under Trump's tariff policies, affordable sports cars are dead. Prediction: Buick — Killed in the U.S. While Killing It in China Buick is in a bit of a pickle. The number of models they field in the U.S. has dwindled down to just four. In spite of the decrease in offerings, the brand has shown growth in recent years with a significant jump of 39% in the first quarter of 2025. It seems as though Americans were catching on to Buick's new offerings. Buick specializes in inexpensive but premium-feeling small and medium-sized crossovers with just the U.S.-built Enclave filling the large crossover spot. However, Buick's best sellers all come from overseas. The Sales Numbers Tell the Story The Encore GX is Buick's best seller with 58,239 units sold in 2024. The second runner up is the Buick Envista at 51,316 units. These two models account for more than 50% of all Buick sales in the U.S. Both models are built in South Korea. The Buick Envision is their third best seller (47,340) and accounts for about a third of all sales. It is built in China. The Enclave is their most expensive model. It is built in the US. 2024 sales numbers are distorted (26,400) as it was a model change-over year, but they have typically moved around 40,000 units a year. What 25% Tariffs Do to Buick's Prices The South Korean built Encore GX and Envista would face 25% tariffs, adding at least $6,000 - $7,000 to the base price of the vehicles. This pushes the roughly $24,000 Envista and $26,000 Encore GX base prices to between $29,750 to $32,500 respectively. The same currently goes for the Chinese-built Envision. While Trump has raised tariffs on most Chinese imports over 100%, vehicles and vehicle parts from China are under an exemption that keeps the tariff at "only" 25%. The base price of the Envision is $36,500 and with the tariff would likely go over $45,000. While these imported Buick models are excellent values at their current prices and Buick routinely tops the reliability charts, such significant price increases push these models into territory they where not intended to compete in. At nearly $30,000, a base Buick Envista would have to compete with the much larger, more capable, and just as nice U.S.-built Honda CR-V. Meanwhile, Buick Is Thriving in China Across the Pacific, Buick is doing well in China. They have eleven models on sale today with six more coming on a new EV/PHEV/EREV platform showcased with the Buick Electra GS Concept. Buick and GM are making major inroads in the hot EV market their with 40% increases in EV/PHEV market share. They are also showcasing LFP batteries with faster charging technology than is currently available in the U.S. Buick China is so confident in their new platform, they are launching an entire sub-brand called Electra that will feature these six new models. Could GM Shutter Buick in the U.S.? We don't see how Buick can maintain its momentum in the US with massive price increases on its three most popular models that comprise most of their sales. Barclays estimates that GM will cease all imports from South Korea and China, totaling roughly 450,000 vehicles over multiple brands due to tariffs. Rather than on-shoring production, GM may just chose to shutter the brand in the U.S. entirely and let it live on solely in China. While Buick is no longer a major selling brand in the US, ending it removes choice and competition for American consumers. That increased cost and loss of choice are tied directly to the Trump tariffs. Buick isn't the only brand feeling the squeeze — as we explored in our next Tariff Tuesday, the entire small crossover segment faces big trouble since nearly all of them are imported.- 39 comments
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- 1
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- auto tariffs
- buick
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Last week, April 15th, Tax Day for those of us in the U.S., we started a new series called Tariff Tuesday. President Trump's tariffs amount to one of the largest single increases in taxes on the American People in history. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, an increase per household of $1,900 to $7,600 per year. Trump's tariff policies change daily, sometimes hourly, so as always, this information is correct for at least 15 minutes after publication. Each week we document the effects the tariff have or could have on the U.S. automotive industry. Last week we made the case that under Trump's tariff policies, affordable sports cars are dead. Prediction: Buick — Killed in the U.S. While Killing It in China Buick is in a bit of a pickle. The number of models they field in the U.S. has dwindled down to just four. In spite of the decrease in offerings, the brand has shown growth in recent years with a significant jump of 39% in the first quarter of 2025. It seems as though Americans were catching on to Buick's new offerings. Buick specializes in inexpensive but premium-feeling small and medium-sized crossovers with just the U.S.-built Enclave filling the large crossover spot. However, Buick's best sellers all come from overseas. The Sales Numbers Tell the Story The Encore GX is Buick's best seller with 58,239 units sold in 2024. The second runner up is the Buick Envista at 51,316 units. These two models account for more than 50% of all Buick sales in the U.S. Both models are built in South Korea. The Buick Envision is their third best seller (47,340) and accounts for about a third of all sales. It is built in China. The Enclave is their most expensive model. It is built in the US. 2024 sales numbers are distorted (26,400) as it was a model change-over year, but they have typically moved around 40,000 units a year. What 25% Tariffs Do to Buick's Prices The South Korean built Encore GX and Envista would face 25% tariffs, adding at least $6,000 - $7,000 to the base price of the vehicles. This pushes the roughly $24,000 Envista and $26,000 Encore GX base prices to between $29,750 to $32,500 respectively. The same currently goes for the Chinese-built Envision. While Trump has raised tariffs on most Chinese imports over 100%, vehicles and vehicle parts from China are under an exemption that keeps the tariff at "only" 25%. The base price of the Envision is $36,500 and with the tariff would likely go over $45,000. While these imported Buick models are excellent values at their current prices and Buick routinely tops the reliability charts, such significant price increases push these models into territory they where not intended to compete in. At nearly $30,000, a base Buick Envista would have to compete with the much larger, more capable, and just as nice U.S.-built Honda CR-V. Meanwhile, Buick Is Thriving in China Across the Pacific, Buick is doing well in China. They have eleven models on sale today with six more coming on a new EV/PHEV/EREV platform showcased with the Buick Electra GS Concept. Buick and GM are making major inroads in the hot EV market their with 40% increases in EV/PHEV market share. They are also showcasing LFP batteries with faster charging technology than is currently available in the U.S. Buick China is so confident in their new platform, they are launching an entire sub-brand called Electra that will feature these six new models. Could GM Shutter Buick in the U.S.? We don't see how Buick can maintain its momentum in the US with massive price increases on its three most popular models that comprise most of their sales. Barclays estimates that GM will cease all imports from South Korea and China, totaling roughly 450,000 vehicles over multiple brands due to tariffs. Rather than on-shoring production, GM may just chose to shutter the brand in the U.S. entirely and let it live on solely in China. While Buick is no longer a major selling brand in the US, ending it removes choice and competition for American consumers. That increased cost and loss of choice are tied directly to the Trump tariffs. Buick isn't the only brand feeling the squeeze — as we explored in our next Tariff Tuesday, the entire small crossover segment faces big trouble since nearly all of them are imported. View full article
- 39 replies
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- auto tariffs
- buick
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
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From the album: 2024 Buick Envista
