April 8, 2025

Automakers are scrambling to respond to the tariffs imposed by the Trump administration. However, there are further dominoes to fall, as tariff impacts on automotive parts will only become visible in early May. For now we have compiled the initial responses by some of the biggest automakers:

• BMW will absorb the costs arising from the US tariffs till at least May 1, 2025, but may have to reassess the decision after this date.
• Ferrari will maintain prices for the Ferrari 296, SF290 and Roma models and increase prices for its other models by up to 10%.
• Ford, under the ‘From America, For America’ program, has extended its employee pricing to customers till June 2, 2025. However, the Ford Expedition and Lincoln Navigator models, performance models like the Raptor and specialty models like the Mustang and Bronco are not covered by the program.
• General Motors, which currently imports 45% of the vehicles it sells in the US, will boost production of light-duty trucks in the country by adding several hundred temporary workers at its Fort Wyne and Indiana assembly plants.
• Hyundai Motor Group, which owns Hyundai, Kia and Genesis brands, will maintain prices for the next two months. Also, before these tariffs were announced, it pledged to invest $21 billion to boost US production capability, increase localization, reinforce the supply chain, and invest in charging infrastructure. In another move, this time linked to cost savings, Hyundai said it would no longer offer free routine maintenance perk that covered drivers for three years or 36,000 miles of ownership.
• Mazda, which currently only manufactures its CX-50 model in the US in partnership with Toyota at the Huntsville, Alabama, plant, will move to reduce the impact but said it was not in a position to absorb all the tariff costs. After witnessing record sales in 2024 and a great start to 2025, Mazda has been hit hard by the tariffs as it imports over 80% of its vehicles sold in the US.
• Mercedes-Benz claims it was misquoted that it would stop the sale of entry-level models in the US. In fact, it could consider shifting the production of another model to the US. On April 7, Mercedes-Benz said it would not raise prices on 2025 model-year vehicles.
• Nissan has stopped taking orders for its Mexican-built Infiniti brand vehicles QX50 and QX55. It has also reversed a previous plan to cut output at its Tennessee plant that manufactures Rogue SUVs. Nissan says, in the short term, it has ample inventory at its US dealerships that is unaffected by new tariffs. On April 8, Nissan announced price reductions for its two most popular models the Rogue and Pathfinder SUVs under the “Get the Car You Want Tariff-Free” campaign.
• Toyota plans to maintain its current prices and may meet the tariff impact through cost-cutting and improved efficiencies. It has informed major parts suppliers from Mexico and Canada that it will help them with rising costs associated with the tariffs to maintain the continuity of current operations.
• Honda will not raise prices and adopt a wait-and-watch approach. It has also decided to produce the next-generation Civic hybrid in Indiana instead of Mexico from 2028.
• Jaguar Land Rover will pause shipments of vehicles to the US to address the new trading terms and develop a mid-to-long-term plan. The US is a very important market for JLR, contributing to a fifth of its total sales in the last financial year.
• Lamborghini says its approach to the tariffs will be different, with a trade-off possible between volumes and pricing. It is working on different scenarios and will come up with a response in the next few days.
• Porsche imports all of its cars sold in the US, which contributed over 76,000 vehicles to its total sales in 2024, and will be among the most negatively impacted by the tariffs.
• Stellantis, the maker of the Jeep Dodge, RAM trucks and Chrysler vehicles, has announced a temporary halt in production at its five US facilities, two assembly plants in Mexico and one assembly plant in Canada while temporarily laying off 900 workers. Stellantis also reportedly announced it would help suppliers offset the cost of tariffs on a case-by-case and monthly basis.
• Subaru, which imports nearly half of its vehicles sold in the US, has warned its dealers that it cannot guarantee current prices and that they are subject to change.
• Vinfast, which currently produces all its cars in Vietnam and imports them to the US, will see a significant negative impact on its sales from the import tariffs.
• Volkswagen will introduce an “import fee” for the vehicles to factor in the 25% tariff. Additionally, the company has informed its retailers that it is temporarily halting shipments of vehicles of Volkswagen and Audi brands from Mexico and Europe. It has said it will provide dealerships with more clarity on pricing strategies in mid-April.

• Volvo will boost car production at its US plant in South Carolina, including for additional models. Currently, Volvo makes the EX90 and Polestar 3 models in the US.

  We will be updating our forecasts over the coming days to account for different scenarios. Please contact us if you would like to discuss our expectations for what comes next.