Raise prices or cut into their margins, open or close factories: carmakers must soon make major decisions as the United States imposes stiff tariffs on imported vehicles.

The 25-percent tariffs that the administration of President Donald Trump will impose as of Thursday will apply to cars and parts not manufactured in the United States.

Even US automakers will be impacted as they import foreign parts and manufacture vehicles for the US market in neighbouring Canada and Mexico.

Bank of America estimates that the tariffs will apply to 7.3 million vehicles, or eight percent of global sales, and will expose carmakers to added costs and chaos.

One, albeit temporary, strategy to cope with the new tariffs is to avoid them by shipping as many vehicles as possible to the United States before they come into force.

"Shipments have expanded quite a bit to absorb the first shock" of the tariffs, said Cigdem Cerit, an auto industry expert at Fitch Ratings.

"Everyone did build a little buffer," she added.

South Korea's Hyundai was among the........

© International Business Times