A Blow to the Auto Giants: How Much Did Trump’s Tariffs Cost Carmakers?
17 March 15:09
As of mid-March 2026, President Donald Trump’s trade policy had resulted in $35.4 billion in additional costs for automakers. This amount has accumulated since the beginning of 2025 due to the introduction of new tariffs.
This is reported by [Komersant], citing a publication by Automotive News.
The financial burden on each company depends on the share of imported models and the source of parts for production in the U.S.
“Toyota appears poised to face the highest tariff bill of any automaker in fiscal year 2026, which ends on March 31. As financial reports show, tariffs cost the Detroit Three (General Motors, Ford, and Stellantis—ed.) $6.5 billion in 2025,” the report states.
Current rates stand at 15% on vehicles from the EU, Japan, and South Korea, and 25% on non-U.S. components in vehicles from Canada and Mexico. There is also a 50% tariff on imported steel and aluminum and a 100% tariff on electric vehicles of Chinese origin.
To prevent a sharp rise in retail prices, automakers are covering a significant portion of these costs out of their own profits. This has led to a decline in profitability, changes in the release schedules for new models, and selective price increases for certain vehicles.
An additional source of pressure has been the $70 billion in costs associated with restructuring the business to produce electric vehicles. These investments are taking place against a backdrop of falling demand for electric vehicles and the elimination of government tax incentives. As a result, the industry is forced to simultaneously finance the technological transition and offset losses from trade barriers.
