Automakers have already started to adapt to the 25-percent tariff imposed on car imports by US President Donald Trump, from pausing production to raising prices or halting certain models.

The additional levy came into effect on Thursday and applies to all cars that are not manufactured in the United States.

Bank of America estimates that some 7.3 million vehicles, or eight percent of global auto sales, will get hit by the tariff.

Ford CEO Jim Farley said in February that the tariffs will expose automakers to a "lot of cost and a lot of chaos".

Similar tariffs on car parts will also gradually come into effect.

The tariffs raise two fundamental questions for the US auto market: by how much will prices rise and to what extent will consumers buy fewer vehicles?

Volkswagen has already informed its US dealers that it will add an "import fee" to cars it ships into the country from Europe and Mexico, according to trade publication Automotive News.

Bank of America estimates that US vehicle prices would rise by about $10,000 if manufacturers fully pass on the cost........

© International Business Times