Trump’s Tariffs and How Every Major Carmaker is Responding

The global car industry is in absolute chaos – here’s the response and actions taken by every major manufacturer

In just his first 100 days back in the White House, Trump has managed to detonate a 25% tariff bomb on all foreign-built cars entering the United States – and the shockwaves are being felt from Crewe to Kyoto.

Luxury brands, mass-market giants, EV innovators – none have been spared. Factories are slowing down, exports are on pause, prices are climbing, and car companies are scrambling to rethink global supply chains and future strategy. Some are absorbing the pain, others are quietly passing it on. All are in crisis mode.

So What Exactly Happened?

Trump’s administration reimposed a 25% tariff on imported vehicles and parts under the banner of protecting American manufacturing. In reality, it’s wreaked havoc – especially for countries and brands that rely heavily on the U.S. market for high-value exports, like Britain, Germany, Japan, and Korea.

There are some last-minute concessions: tariff relief for parts from ‘friendly’ nations, tax credits for local assembly, and USMCA exemptions (covering Canada and Mexico). But for many automakers, the damage is already done. Let’s break it down, brand by brand. Watch my video above for a full explanation, here are the key notes:

Jaguar Land Rover – Stuck & Staggering

• 25% of global sales come from the U.S. – now paused.
• JLR froze all shipments and has no U.S. production base.
• British-built exports are hit hardest. No factory = no escape route.
• Analysts warn JLR and other UK marques must raise prices or bleed profits.
• Up to 25,000 UK jobs could be at risk if exports collapse.

Aston Martin – On Ice

• Exporting frozen. Cars are literally parked at ports.
• Could lose £30 million in gross profits this year alone.
• Price hikes inevitable – analysts expect hefty increases on U.S.-bound models.
• Lotus has taken similar steps, suspending U.S. deliveries.

Volkswagen Group – Delaying the Inevitable

• Audi and VW have halted U.S. shipments, holding vehicles at ports.
• Audi’s Q5 faces double tariffs from Mexico; pricing headaches looming.
• Production shifts are being considered, but nothing’s confirmed.
• VW may expand U.S. manufacturing, but that takes time – and billions.

Porsche – Front-Loaded, Now Cornered

• Flooded U.S. with inventory just before tariffs hit.
• No U.S. factories = full tariff exposure.
• Profits slashed; stock price down 25% year-to-date.
• Plan to raise prices if tariffs stick. No plans to localise production.

BMW & Mercedes – Shrugging It Off (For Now)

• Massive U.S. production (Spartanburg, Alabama) shields key models.
• Both still import sedans and EVs from Mexico and Europe — these are tariffed.
• Absorbing costs for now, hoping tariffs are short-lived.
• Playing the waiting game. But how long can they hold out?

Volvo – Wounded but Fighting

• Most models sold in the U.S. are imported from Sweden, Belgium or China.
• Plans to expand U.S. factory and localise more models like the XC90.
• Launched $1.9bn cost-cutting plan, pulled financial guidance, and warned of layoffs.
• Q1 profits down 60% year-on-year. The struggle is real.

Ford – Calm, Cautious, Clever

• Most of its cars are U.S.-built = minimal direct impact.
• Imports like Mach-E and Bronco Sport now tariffed.
• Lobbied successfully for tariff relief alongside GM.
• Hasn’t halted production. May tweak prices or content if needed.

GM – Withdrawn & Worried

• Also well-insulated due to domestic production.
• But has pulled its 2025 earnings forecast, citing tariff uncertainty.
• CEO Mary Barra led industry pushback. Won partial relief measures.
• Investors are rattled. The long-term outlook? Cloudy.

Stellantis – Cutting Deep, Acting Fast

• Paused factories in Mexico and Canada.
• Laid off 900 U.S. workers linked to affected production lines.
• Plans to restructure globally and accelerate U.S. EV production.
• Using USMCA exemptions to restart output and dodge full tariff cost.

Toyota – Tight-Lipped but Tactical

• No price hikes yet, despite huge exposure.
• Cutting internal costs and tweaking supply chains.
• May shift next-gen RAV4 production to Kentucky.
• Sales surged before the tariffs hit – a lucky timing advantage.

Honda – The Quiet Reshuffler

• Will build the next Civic in Indiana instead of Mexico.
• Leaning heavily on U.S. production footprint.
• Rebalancing inventory and quietly keeping costs down.
• Saw pre-tariff sales rush – riding that momentum while it lasts.

Nissan – Cutting in Japan, Doubling Down in the U.S.

• Slashed Rogue production in Japan; boosting U.S. output instead.
• Launched price cuts on U.S.-built models like the Pathfinder.
• Prepping customers for price hikes on small imported cars.
• A clever pivot to keep their best-sellers tariff-free.

Hyundai & Kia – The Winners?

• No price hikes, and booming U.S. production.
• Publicly pledged to hold prices for 60 days.
• New plants in Alabama and Georgia cushioned the blow.
• Strong messaging has built trust – and boosted sales.

So… What Now?

Car companies are moving fast – rerouting supply chains, delaying shipments, revising forecasts, even shifting entire production plans. But it’s all reactionary chaos. And the long-term damage? We’ll be feeling that for years.

Even with Trump’s tariff tweaks and exemptions, the policy has already:

✅ Disrupted exports
✅ Forced plant closures
✅ Triggered layoffs
✅ Pushed up car prices
✅ Shaken investor confidence

This isn’t just about politics – it’s about how much you will be paying for your next car. And whether that dream Porsche, Aston or Range Rover will be priced right out of reach.

Nonetheless, as one industry insider said: “the tariff may dent the auto industry, but it won’t break it – car companies are finding ways to keep the wheels turning.”

What do you reckon – should carmakers be punished for globalising, or is this just economic madness?

Let me know in the comments, and don’t forget to subscribe to the channel, buy my books, and support BrownCarGuy!

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