- Automotive News analyzed financial reports to determine that the Trump administration’s tariffs have cost automakers $35 billion since 2025.
- Toyota is the most impacted, the report states, with a projected $9.1 billion in tariff-related costs through the end of March.
- While the tariffs are meant to encourage more U.S. production, uncertainty around the constantly changing taxes has made it hard for automakers to commit.
The automotive industry is a global spider web—most companies have production facilities in several countries and work with suppliers across the world, with auto parts crisscrossing oceans and continents on their journey to end up in your driveway. But the tariffs on imported automobiles implemented by the Trump administration last year shook up this globally interwoven industry. Now we have a better sense of just how much these import taxes are affecting automakers. Automotive News has analyzed automakers’ financial reports and discovered that the tariffs have cost automakers at least $35.4 billion since last year.
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Automotive News combed through the financial reports from automakers that were available through the middle of March, taking into account full-year tariff costs from 2025, and in some cases, projections of costs through March 2026. The costs have not been spread evenly, with automakers who rely more heavily on overseas production and who source crucial parts from abroad for their U.S. assembly being hit the hardest.
According to the analysis, the tariff’s biggest impact was on Toyota, which projected ¥1.45 trillion, or about $9.1 billion at current exchange rates, in costs for the 2026 fiscal year, which ends March 31. Automotive News says that the three Detroit-based automakers—General Motors, Ford, and Stellantis—were hit by $6.5 billion in tariff-related costs in 2025. Several other automakers either reported or are predicting tariff costs of more than $1 billion: BMW, Honda, Hyundai-Kia, Mazda, Mercedes-Benz, Nissan, Subaru, and Volkswagen.
Currently, there is a 15 percent tax on vehicles imported from the European Union, Japan, and South Korea. Vehicles produced in Canada or Mexico that fall under North American free-trade rules are still hit with a 25 percent tariff on the value of their parts that are not from the U.S. A 50 percent tariff on steel and aluminum is also impacting production, and there is still a 100 percent tariff on China-built EVs that was implemented by the Biden administration.
While the Trump administration has envisioned the tariffs as a way to entice automakers into bringing production stateside, the lack of consistency regarding the policies has made this tricky. The United States has negotiated with other countries on trade deals, and some tariffs have been repealed or reduced, but there has been little clarity to automakers on when or by how much the duties will be adjusted. This includes tariffs on auto parts and materials used for automotive assembly.
Adding production in the United States is also not a simple process and can take many years. Some automakers, such as Audi, are considering building more U.S. factories, and others have said they will bring production of certain models stateside, such as the next Buick compact SUV, but the ever-present uncertainty has made it challenging to commit. While automakers would probably hope to see the tariffs removed, many would likely just be content to see some stability as they sort out their future production plans.
