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General Motors’ (GM.N) Buick was on a roll. Sales for the once-stodgy brand were up 39per cent in the first quarter with a refreshed lineup of compact SUVs including the Envision, Encore GX, and the Envista, its top-selling SUV for under $30,000.
Then President Trump’s tariffs hit.
Buick’s three most popular models are made outside the US The Envista and Encore GX are both built in South Korea, while the Envision SUV is made in China.
That means all three are now subject to stiff tariffs that could add thousands to sticker prices on dealer lots in the US
Buick’s South Korea-made models face a 27.5per cent tariff and the Envision out of China faces a steep 47.5per cent fee with a 25per cent auto tariff, a 20per cent China fentanyl tariff and a previously existing 2.5per cent auto tax, according to a Barclays analysis.
It's bad news for Buick dealers, which have been thrilled by recent models by the brand that has for years struggled to shake off a stereotype that may no longer apply.
Analysts believe higher prices could stall Buick’s momentum, and even threaten its survival.
"The latest wave of Buick vehicles is affordable, are good quality, are decent vehicles, and ruining that with a cost disadvantage could upset Buick as a going entity in the US," said Sam Fiorani, vice president of research firm AutoForecast Solutions.
Buick declined to comment for this story.
RE-EVALUATING PORTFOLIOS
Trump's tariffs are pushing auto executives to analyze their portfolios and evaluate if the costs are worth it in the long term to keep importing some foreign-made models. The tariffs, enacted earlier this month, have already led to some changes.
GM moved to increase truck output at an Indiana plant and Stellantis (STLAM.MI), maker of Ram trucks and Jeeps, temporarily halted production at two plants in Mexico and in Canada.
In a Tuesday, April 15 note, Barclays said it's assuming automakers "will no longer sell vehicles that cannot be sold profitably," including vehicles imported from China and Korea as a result of auto tariffs.
For GM specifically, Barclays expects the automaker will cease imports out of Korea and China of about 450,000 vehicles because of tariffs.
Barclays is cutting its 2025 GM earnings before interest and taxes estimates by 40per cent based on lower volume and the gross tariff impact of about $9.5 billion. For its crosstown competitor Ford Motor (F.N), Barclays expects a 60per cent reduction with a gross tariff impact of about $7 billion. Ford ships its Lincoln Nautilus from China.
Affordable vehicles like the Envista and Chevrolet Trax, both built in South Korea, stand to take the biggest hit from tariffs because automakers often build them outside the US
The impact on affordable vehicles is an industry-wide concern with the average transaction price of a new vehicle in the US "north of $48,000," according to research firm Cox Automotive, which expects tariffs will cause a 10per cent to 15per cent increase in prices of affected models, and an overall 5per cent jump in prices of vehicles not subject to the levies.
STALLING THE NEW BUICK
Buick's lineup has either been replaced or refreshed in the last 20 months leading to sales increases. The brand’s yearly sales in 2023 increased by 61per cent and by 10per cent in 2024, according to the company’s sales figures.
The 2023 arrival of the Envista, a small SUV priced starting at $23,800, elevated the brand. New styling for the Envision, a compact SUV starting at $36,500, came last year, further amplifying it.
“Envision is the bestseller right now,” said Jeff Laethem, GMC and Buick dealer in Detroit. “Once they put the Envista styling on it, that's when it took off.”
Buick’s market share in the US has jumped from 0.8per cent in 2022 to 1.1per cent in 2024 and 1.6per cent in the first quarter of 2025, according to data from Edmunds.com.
Buick has “probably the strongest momentum they've had in decades,” said Ivan Drury, director of insights at research firm Edmunds. “If this momentum slows down, stalls or stops, then it’s not putting a nail in the coffin, but you're really ruining a good thing … it does dampen the dream of bringing back what was a very historic and important nameplate in the US auto industry.”
Buick had a healthy supply on dealer lots as of early April with 53 days, above the industry average of 47, according to Edmunds.
While the global trade war continues, GM also has to consider the difficulties it’s facing in China, a leading market for the Buick brand. GM and other foreign automakers in China have been struggling to gain footing in a market overtaken by domestically-manufactured electric vehicles.
Buick's sales have declined in China by 65per cent from 2020 to 2024, according to data from Telemetry, a Detroit-area automotive advisory firm.
With tariffs and market uncertainty in China, there is a “risk to the survival of the brand,” said Sam Abuelsamid, vice president of insights at Telemetry.