How carmakers are responding to Trump’s auto tariffs, so far

Unfortunately for the auto industry, cars appear to be at the center of the ongoing trade war between the US and the rest of the world.

President Trump has repeatedly stated that his goal is to increase US manufacturing, though only a few automakers have made commitments to boost their US businesses so far (and some that have did it before the tariffs were officially announced last month).

Many others have taken to raising prices, halting US shipments, or temporarily lowering their margins by absorbing tariffs. Ultimately, if the tariffs stick around, US vehicle costs are expected to jump about 11% on average.

We’re tracking how the world’s biggest carmakers are responding to what UBS calls a “new world order” for the auto industry.

Detroit automakers

The differences in the manufacturing strategies between the big three automakers have possibly never been more pronounced. About half of GM’s US sales (46%) are imports, compared to just a fifth (21%) of Ford’s. That’s likely why Ford is offering lower employee pricing on most of its models through early June.

GM hasn’t commented on its tariff strategy yet, but said it will boost light-duty truck production at an Indiana factory in late April and hire up to 250 temporary workers to support the increased output. That said, GM did lay off several hundred workers at its Ontario plant this week, though it said that reduced demand for EVs was behind the decision.

Stellantis, already having a rough year without tariffs, has made a handful of levy-induced moves. On the day 25% auto tariffs officially began, the Jeep maker said it would temporarily lay off 900 US workers and pause production at two plants in Canada and Mexico. Like Ford, it’s offering employee pricing discounts to customers, though only through the end of April (before further tariffs on auto parts are set to go into effect on May 3).

Japanese automakers

UBS analysis shows that Japan’s auto industry is facing a $24 billion hit from Trump’s tariffs. But the country’s major players have declined to raise prices so far.

In late March, Toyota said it would run its US operations as usual despite increased import costs, and reportedly doesn’t have plans to raise prices. Mazda will similarly absorb extra costs for now, emailing its US dealers that it won’t hike the price of vehicles coming into the US before May 1.

Nissan recently said it would scrap earlier plans to cut production at a Tennessee factory.

In early March, Reuters reported that Honda will shift production of its Civic hybrid from Mexico to Indiana. Honda is also said to have struck a deal to purchase US-made batteries from rival Toyota — enough to supply every hybrid it sells in the US.

Hyundai

In early April, Hyundai said it would freeze prices on its current models until June 2.

On the same day Trump announced auto tariffs, the South Korean automaker opened a roughly $7.6 billion new car and battery factory in Georgia that was first developed under the Biden administration. The factory will be able to produce 300,000 vehicles per year, Hyundai reported.

A few days before Trump unveiled his auto tariff policy, Hyundai announced a $21 billion investment in the US, including a $5.8 billion Louisiana steel plant that will supply its Southern auto factories.

European automakers

Europe’s largest automaker, Volkswagen, has paused shipments to the US and plans to slap an “import fee” (i.e. a price hike) onto tariff-affected vehicles in the country. Last year, about 70% of VW’s US sales were vehicles built in Mexico.

According to Bloomberg reporting, Mercedes-Benz is mulling whether to pull its lowest-price models out of the US. In the meantime, the luxury carmaker has said it won’t raise US prices.

Elsewhere across Europe: BMW in early March said it would absorb tariffs for its cars built in Mexico until May 1, the UK’s Jaguar Land Rover said it would pause US shipments, and Ferrari said it will freeze pricing on three models and hike prices by up to 10% on the rest.

EV makers

In a bit of a U-turn from other automakers, Tesla on Friday stopped taking orders for two of its US-built models in China, likely due to the country’s 125% retaliatory tariff on US goods. The EV company is considered less vulnerable to tariffs than most manufacturers, though it will still face a hit if levies on imported auto parts go into effect May 3 as expected. Rivian, which similarly builds all of its vehicles in the US, faces the same issue.