Trump Tariffs Have Cost Automakers Over $35 Billion Since Last Year

The auto industry has been scrabbling to adjust after President Donald Trump introduced heavy tariffs last year, and although the Supreme Court has blocked many of these tariffs, auto tariffs have remained in place, keeping car prices high. Analyzing financial reports that were available at the time of publication, Automotive News (subscription required) reports that U.S. tariffs have cost automakers “at least $35.4 billion since 2025.” That’s more than 10% of America’s GDP, which is projected at $31.8 trillion for 2026. Unsurprisingly, some automakers have suffered more than others, and Toyota may be the worst off, projecting ¥1.45 trillion ($9.1 billion) in costs for the 2026 fiscal year, ending on March 31, the biggest tariff bill so far.

Detroit Also Suffered From Tariffs, But It’s Not Alone

The report says that tariffs cost the Detroit Big Three—Ford, General Motors, and Chrysler (Stellantis)—a collective sum of $6.5 billion in 2025, while BMW, Honda, Hyundai-Kia, Mazda, Mercedes-Benz, Nissan, Subaru, and Volkswagen either reported or expect tariff bills over $1 billion. That sum applies to each of the eight automakers, and it’s not the only cost they’ve all incurred. A separate report from AN reveals that restructuring EV businesses, after the loss of the $7,500 federal tax credit decimated already lukewarm EV sales, is an expensive and ongoing exercise that is now close to $70 billion.

For the record, these tariffs not only apply to entire vehicles imported to the U.S., but also to parts and components. Steel and aluminum imports are taxed 50 percent, and cars from within the European Union, Japan, and South Korea are all saddled with a 15 percent tariff, while those made in Canada or Mexico that comply with North American free-trade rules get a 25 percent duty applied to the value of the non-U.S. content. However, negotiations to renew the US-Mexico-Canada agreement (USMCA) have yet to be conducted, and President Trump may impose stricter rules or even do away with the pact altogether. All of this uncertainty is making the chances of a fall in the cost of the average new car unlikely.

Expect Cars to Cost More

In America, affordable cars are few and far between, and automakers are likely to pass tariff costs on to customers in 2026, making cheap vehicles even harder to come by. What’s more, these automaking businesses are being sneaky about how they shift the burden, with many inflating destination fees to make up the difference in a highly competitive car market, where dollars and cents are already carefully scrutinized. Some destination fees now cost over $3,000, and considering that trade policy is no longer stable, automakers are struggling to predict what moves to make. Do they shift production to the U.S., investing billions in new factories and trade agreements in the hope that the investments will pay off when customers “buy American,” or do they hold out in their current economic infrastructure in the hope that future international deals will be less harsh on those importing cars, raw materials, and components? Either way, automakers are under pressure from shareholders to improve profits, which is why companies like Porsche are doubling down on costlier options, trading volume for high-margin sales. The bottom line is that automakers will introduce more pricier cars and fewer that the average American can afford, which is likely to have a knock-on effect in the used market. Hold on tight, 2026 is going to be rough.