Donald Trump's tariffs have cost carmakers $35B since 2025
What's the story
The Donald Trump administration's tariffs on vehicles and auto parts have cost automakers a whopping $35 billion since 2025, an analysis of financial reports has revealed. The report by Automotive News found that Toyota is the most affected company, with an estimated $9.1 billion in tariff-related costs until March end. The tariffs were intended to promote domestic production but their unpredictable nature has made it difficult for automakers to plan their production strategies.
Domestic burden
Detroit Three incur $6.5B in tariff-related costs
The three Detroit-based carmakers, General Motors, Ford, and Stellantis, together incurred $6.5 billion in tariff-related costs in 2025. Other companies like BMW, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Nissan, Subaru, and Volkswagen have reported or are expecting tariff costs exceeding $1 billion each. The tariffs currently impose a 15% tax on cars imported from the European Union (EU), Japan and South Korea.
Trade regulations
Other tariffs affecting production
Cars manufactured in Canada or Mexico under North American free-trade rules are still subject to a 25% tariff on the value of non-US parts. A 50% tariff on steel and aluminum is also affecting production, while a 100% tariff on China-made electric vehicles (EVs) remains in place from the Joe Biden administration era. These measures have further complicated the already complex global automotive supply chain.
Production challenges
Tariffs aimed at shifting production to US
The Trump administration's tariffs were aimed at luring automakers into shifting production to the US. However, the lack of consistency in these policies has made this difficult. Despite negotiations with other countries and some tariffs being lifted or reduced, automakers have been left in the dark about when or how much duties would change. This includes tariffs on auto parts and materials for automotive assembly, further complicating their future production plans.