GM Moves Buick Crossover Production to Kansas by 2028 to Cut Tariff Costs
U.S. tariffs since 2025 forced GM, Ford and Stellantis to absorb $6.5 billion in duties in 2025, part of a $35.4 billion industry burden. GM will move next-generation Buick crossover production from China to Kansas by 2028 and has started passing tariff costs into sticker prices.
1. Tariff Costs Hit Detroit Three
Since the U.S. imposed 15%–25% import duties on key automotive inputs in 2025, the industry has absorbed $35.4 billion in tariff costs through mid-March 2026. GM, alongside Ford and Stellantis, accounted for $6.5 billion of those duties in 2025, squeezing operating margins across the Detroit Three.
2. GM's Production Shift to Kansas
To mitigate ongoing tariff expenses, GM announced plans to relocate assembly of its next-generation Buick crossover from China to Kansas by 2028. The move aims to qualify the model for favorable North American free trade rules and reduce the 25% tariff on non-U.S. content.
3. Pricing Effects on Imported Models
While most automakers initially absorbed duties to stay competitive, GM and peers have begun passing a portion of tariff costs to consumers. Sticker prices on foreign-built vehicles have climbed more steeply since Q3 2025, reflecting a strategy to offset margin pressures.
4. Uncertain Tariff Landscape
A year into the new regime, executives still lack clarity on the permanence and scope of individual duties. This uncertainty complicates GM’s longer-term investment and EV profitability plans as the company navigates shifting trade policy.