A 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes.
The new tariff comes days after Donald Trump eased the measure in response to business worries, but did not eliminate it.
The US president has said the new tariff, along with a 25% import tax on cars that went into effect last month, is intended to push carmakers to do more manufacturing in the US.
But analysts said any immediate expansions in the US were likely to come at the expense of production elsewhere, while also leading to higher costs for the businesses – and ultimately higher prices for customers.
For now, companies have been shielded from pain, as concerns about price hikes have prompted a sales surge.
General Motors and Ford this week reported double digit sales growth continuing in April.
But GM also warned it expected as much as $5bn (£3.7bn) in new costs this year as a result of the tariffs, including roughly $2bn in charges on cars it makes in South Korea and exports to the US.
Executives said they now expected prices to rise roughly 1%, instead of falling as previously forecast.
In a sign of the turmoil, other car companies, including Stellantis, maker of Jeep, Fiat and Chrysler, withdrew financial guidance for the year ahead, citing the fluidity of the situation.
"We remain subject to extreme uncertainties," Stellantis chief financial officer Doug Ostermann told analysts this week.