Buick’s three top-selling SUVs face tariffs of up to 47.5% on U.S. imports.
GM may halt imports of 450,000 vehicles from China and Korea due to rising costs.
Buick’s market gains in the U.S. risk reversal amid higher sticker prices and shrinking supply.
U.S. tariffs on vehicles imported from China and South Korea are expected to seriously undercut Buick’s recent sales growth, with its top-selling models now subject to new levies that could increase retail prices by thousands of dollars.
General Motors’ Buick division, which had recorded a 39% sales increase in the first quarter of 2025 in the U.S., is especially vulnerable due to its reliance on overseas manufacturing. The Envista and Encore GX are produced in South Korea, while the Envision SUV is assembled in China. According to a Barclays analysis, the South Korean imports now face a 27.5% tariff, while the Envision is subject to a combined 47.5% tariff due to overlapping trade penalties and import duties.
The price hikes threaten Buick’s upward trajectory in the U.S. market. The company has not issued a public comment on the potential impact, but industry analysts point to the affordability of Buick’s current lineup as a key factor behind its recent momentum.
Barclays warned in a client note on April 15 that the new tariffs could force General Motors to stop importing about 450,000 vehicles annually from China and South Korea. It also cut GM’s 2025 EBIT estimates by 40%, citing an estimated gross tariff impact of $9.5 billion. Ford Motor faces a projected 60% EBIT reduction and a $7 billion tariff cost, due in part to its China-made Lincoln Nautilus.
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Industry-wide, the tariffs are expected to raise prices of affected models by 10–15% and could drive a 5% increase across the broader vehicle market, according to Cox Automotive. This may hit entry-level vehicles especially hard, including the Buick Envista and Chevrolet Trax, which are among the most affordable SUVs available.
Despite current challenges, Buick has seen growth in market share from 0.8% in 2022 to 1.6% in the first quarter of 2025. The refreshed Envision have driven much of that expansion. Dealers have reported strong demand and inventory levels remain healthy, with a 53-day supply on average, according to Edmunds.
However, Buick’s outlook is less stable globally. The brand’s sales in China—a major historical market—have declined by 65% since 2020 amid growing competition from domestic EV manufacturers. Sam Abuelsamid, vice president at Telemetry, said the combination of tariff pressures in the U.S. and market erosion in China poses a “risk to the survival of the brand.”
Though Buick sales were up by 44.1% in Q1 in Canada, a dramatic decline in imports and sales in the U.S. could impact availability here. Buick Canada’s 22,938 sales for all of 2024 pale compared to Buick USA’s 61,822 units delivered in Q1 alone this year. Importing a fraction of the planned Envista, Encore GX, and Envision may prove too costly for the Canadian market alone.
Source: Reuters
