Trump tariffs have cost automakers more than $35 million so far
Toyota $TM faces the highest bill of any automaker, projecting 1.45 trillion yen — or about $9.1 billion — in tariff costs for its fiscal year ending March 31. The Detroit Three – GM, Ford $F, and Stellantis $STLA – collectively absorbed $6.5 billion in tariff costs in 2025. BMW, Honda $HMC, Hyundai-Kia, Mazda, Mercedes-Benz, Nissan, Subaru and Volkswagen have each reported or anticipated bills exceeding $1 billion.
Exposure to tariffs differs significantly from company to company, depending on how much of each automaker’s U.S. sales come from foreign factories and which countries supply components for locally assembled vehicles. Vehicles from the EU, Japan and South Korea are subject to 15% import duties. Canadian and Mexican vehicles that meet North American free trade requirements are subject to customs duties of 25% calculated on the portion of their value that does not originate in the United States. Imports of steel and aluminum are taxed at 50%.
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said most automakers have refrained from passing costs on to buyers, betting the tariffs would be short-lived. “Raising prices based on what was considered a temporary situation didn’t make much sense in this competitive market, so many companies initially absorbed those costs,” Fiorani told Automotive News.
Despite this posture, price increases have started to be felt. A study of VIN-level pricing by data firm Catalyst IQ, cited by Automotive News, found that between the third quarter of 2025 and February 2026, sticker prices climbed more steeply for foreign-built vehicles — those made in Canada, Japan, Germany and Mexico — than for domestically produced models.
Several production and range decisions reflect pricing pressure. General manager plans to relocate assembly of its next-generation Buick crossover from China to Kansas by 2028. Dodge removed the Hornet from its lineup last January, attributing the decision to changes in the political landscape. Volkswagen has chosen not to bring its ID Buzz minivan to the U.S. market for the 2026 model year, with pricing being among the reasons cited.
A year into the new tariff regime, automakers still aren’t clear which duties are permanent, said Dan Hearsch, global co-head of the automotive and industrial practice at AlixPartners. “It’s still pretty difficult to do because the administration just hasn’t been very clear or consistent in its enforcement and what’s staying, what’s increasing, what’s decreasing and what’s being added,” Hearsch told Automotive News.
