How Are Automakers Responding to Trump’s Tariffs?
Editor’s note: This story was updated April 28, 2025, to include additional automaker responses.
Following the 25% tariff on all imported cars imposed by the Trump administration, it looks as though it will be an interesting ride to see how automakers react. We’re tracking the responses that automakers are having to the global tariffs to see exactly what actions they’re taking, as well as how car shoppers will be affected in the next few days, weeks and potentially months. Here’s what’s happened since the tariffs went into effect on April 3.
Related: Stay Up to Date on Tariff News
BMW Group (BMW, Mini, Rolls-Royce)
The German luxury carmaker told its dealers that it will absorb the cost of tariffs on its Mexican-made models in the U.S., which means its 2 Series and 3 Series vehicles made in Mexico will likely not see price increases. What this means for the rest of the BMW showroom, however, is not yet certain. The company makes almost all of its SUVs in the U.S., but it still has a sizable portion of European-imported vehicles, as well as a considerable percentage of imported content for parts and components.
Mini, however, will be holding off on bringing its Chinese-built electric Aceman crossover and convertible Cooper to the U.S. for now. Both were scheduled to go on sale here in the next couple of years, but Mini confirmed to Automotive News that Trump’s increased tariffs on Chinese imports combined with soft demand were the reasons why those plans are now on hold.
Ferrari
If you have a Ferrari on order, congratulations! But also, here’s some bad news: The Italian sports-car maker will impose as much as a 10% bump in prices on most of its models, according to reports. The price bump is likely to also impact orders that were placed months ago. Ferrari sales contracts allow for the company to adjust pricing due to changing economic conditions — and those conditions almost certainly have been met.
Ford Motor Co. (Ford, Lincoln)
Getting ahead of the tariffs, Ford decided to offer up a sale: The “Ford Motor Co.: From America, For America” sales campaign brings employee pricing for everyone through June 2. The incentive can mean thousands of dollars off the price of a new Ford or Lincoln model. However, the deal doesn’t apply to certain vehicles, including anything with a Raptor badge (F-150, Bronco or Ranger), the new 2025 Super Duty pickup truck, or the redesigned 2025 Ford Expedition and Lincoln Navigator. Discounts vary by model, too, but that can mean anywhere from $1,300 off a new Maverick to $6,800 off a new F-150. The offer applies to either existing dealer inventory or new retail orders submitted by June 2. With more than 60 days of inventory on dealer lots when the 25% automotive tariff kicked in on April 3, Ford can afford to do this kind of sale to boost its numbers this year — but what the prices and availability will look like this summer now could be really interesting. If you want a new Ford or Lincoln, now is really the time to get one.
While Ford has committed to keep prices stable through June 2, what happens after then depends on what happens with the tariffs. The company told its dealerships that it anticipates changing its pricing if Trump’s tariff policies remain unchanged. Any pricing updates would start with vehicles produced in May, which are expected to arrive at dealerships in late June.
GM (Buick, Cadillac, Chevrolet, GMC)
The only news out of GM is a report that it will be increasing production of full-size pickups at its Fort Wayne, Ind., plant, resulting in the hire of 225-250 temporary workers to cover additional shift time. The plant makes the Chevrolet Silverado 1500 and GMC Sierra 1500 pickups but has the excess capacity to increase output. About half of GM’s pickups come from its Canadian and Mexican plants, but GM said that production at those locations is currently unaffected.
Honda Motor Co. (Acura, Honda)
Japanese brand Honda confirmed it will move production of the Civic hybrid from Japan to the U.S. in response to new tariffs on imported cars. As for its existing North American factories, the company currently does not plan to shift any production away from its plants in Canada or Mexico.
Hyundai Motor Co. (Genesis, Hyundai, Kia)
The South Korean brands, which import a significant portion of the vehicles they sell in the U.S., announced that they will maintain current prices for the next two months, through June 2.
To get around the tariffs, Hyundai has shifted additional production of its Tucson SUVs from Mexico to its plant in Alabama. It has also launched a task force to study further ways it can ride out the current trade environment and increase parts sourcing in the U.S. In addition to shifting Tucson production, the automaker is considering moving some production of its U.S.-market South Korean-built cars to other facilities, as well.
Jaguar Land Rover
The British automaker has announced a pause on exports from the U.K. in April until it determines a way forward through the tariff situation. The automaker reportedly increased shipments prior to the announcement of tariffs, presumably to stock up on inventory in advance of the implementation on April 3.
Ineos
The British SUV and pickup startup makes its vehicles at a single plant in France and is therefore subject to the full impact of tariffs. As a result, Ineos has announced that it will be raising prices for both its vehicles, effective April 3. The Grenadier SUV will see a 4.9% increase in price, to $80,455 (all prices include destination fee), while the Quartermaster pickup (which is already subject to a longstanding 25% tariff on imported pickups) will see a price increase of 11%, to $94,500. The company said that orders placed prior to April 3 will not be subject to the price increases.
Mercedes-Benz
The German luxury brand has announced that it is currently planning to hold the line on prices for its 2025 models in response to tariffs. According to reports, the automaker is monitoring the situation and will adjust pricing as necessary in the future. A little over half of Mercedes-Benz’s U.S.-sold vehicles are imported, but its high-profit SUVs (the GLE, GLE Coupe, GLS, and electric EQE and EQS) are made at its Alabama assembly plant.
The company said that it’s looking at the possibility of adding another model to its Alabama plant, which speculation suggests might be the mid-size GLC SUV given it’s the bestselling imported model that Mercedes-Benz offers in the U.S. The news comes as reports suggest the company is also considering ending sales of its imported entry-level models like the CLA sedan and GLA SUV due to tariff impacts on their profitability.
Mitsubishi Motors Corporation
Mitsubishi is holding new vehicles at ports until the automaker has “additional visibility on tariffs and decisions made on next steps,” company spokesperson Jeremy Barnes confirmed to Automotive News. In the meantime, the company is not adjusting pricing on its existing inventory, which was imported before the tariffs. However, it has adjusted its April promotions on the 2025 Outlander, decreasing its customer cash offer from $1,500 to $1,000 and raising its promotional financing rate from 2.99% to 4.99%.
Nissan Motor Co. (Infiniti, Nissan)
Nissan got in ahead of the tariff announcements by announcing price reductions for the popular Rogue and Pathfinder SUVs for the 2025 model year, effective April 1. Both vehicles are made in Tennessee (with some high-end Rogue trims imported from Japan) and are seeing strong sales numbers, but the changes in price allow Nissan to advertise starting prices under $30,000 for the Rogue and $40,000 for the Pathfinder, though the price reductions vary by trim level. Nissan also told its dealerships (and confirmed to Cars.com via email) that it will not raise prices on any of its imported vehicles until at least June 2 thanks to having nearly a three-month supply of tariff-free vehicles to sell as of April 21.
Additionally, Nissan plans to increase its U.S. production of Rogues by 56%, shifting more production away from tariff-vulnerable Japan. The automaker has been looking for ways to increase production at its underutilized plants in the U.S. in response to the tariffs.
At Nissan’s luxury brand, Infiniti, things are a little different: The brand has paused production of U.S.-bound, Mexico-built QX50 and QX55 SUVs until further notice and reportedly may not restart it, citing the vehicles’ unprofitability, according to Automotive News. Production of those models for export markets will continue, however. Those two vehicles comprise nearly a quarter of Infiniti sales in the U.S. The plant in question also makes the Mercedes-Benz GLB SUV, which reportedly only has another year left in its production life cycle, putting the future of the plant itself in question.
Stellantis (Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, Ram)
The automaker has announced both layoffs as it halts production on some imported (and less than popular) models and sales incentives as it tries to bring down its on-hand inventory. Production of the Canada-made Dodge Charger electric vehicle and Chrysler Pacifica and Voyager minivans has been halted for two weeks beginning April 7, while the Mexican-made Jeep Compass and Wagoneer S electric SUV will be stopped from April 7 through the end of the month. This has resulted in the knock-on effect of laying off nearly 1,000 personnel at five American plants that supply components to those vehicles.
Simultaneously, Stellantis has matched Ford in offering employee pricing for everyone on its inventory and announced the “America’s Freedom of Choice” program, which runs through April 30. Shoppers will be able to choose from employee pricing or significant cash discounts on 2024 and 2025 models, with a couple of exclusions on high-demand performance models like the 2025 Ram 1500 RHO and 2025 Jeep Wrangler Rubicon 392.
Toyota Motor Corp. (Lexus, Toyota)
Reports have indicated that Toyota plans on holding the line on pricing for now but is monitoring the situation as conditions change.
Volkswagen Group (Audi, Bentley, Lamborghini, Porsche, Volkswagen)
Volkswagen has told its dealers it will add an “import fee” line item to vehicle pricing on window stickers. Set to take effect after April 22, it will allow customers to actually see the impact of the Trump tariffs on the bottom line pricing. Current VW dealer inventory is roughly 50 to 60 days, and vehicles allocated through April 7-8 are not impacted by tariffs, according to reports. VW has halted rail shipments from Mexico of the Jetta, Taos and Tiguan and has also reportedly halted ocean shipments at European ports. Details of these fees and the amounts they represent will be announced to dealers prior to the April 22 allocation.
In the meantime, Volkswagen told its dealerships that it will keep its new car pricing as is through the end of May.
Luxury brand Audi, which is owned by Volkswagen Group, has also said it is halting shipments of its products to the U.S. until it figures out a strategy to deal with the tariff situation. Additionally, the Lamborghini sports car brand, also owned by Volkswagen Group, has stated that it is not yet sure if it will hold the line or follow rival Ferrari’s move to increase prices in response to the tariffs. The Italian company has reportedly set up a specific task force to monitor the issue, involving a daily update conference to keep abreast of events.
Volvo Cars (Polestar, Volvo)
The first model casualty of the tariff fight is reportedly the Chinese-built S90 sedan. While Volvo has not confirmed this report, Automotive News cites an unnamed source saying that orders for the S90 will be canceled next year. The S90 cancellation would follow the U.S.-built S60 cancellation and is as much a reflection of the slow demand for traditional sedans in the American market as it is a result of tariffs. In addition to cutting the S90, Volvo has confirmed that it will cut incentives on current inventory, as well, and plans to use these savings to apply toward offsetting the effect of tariffs on future imports. The company has said that it does not plan on adjusting any pricing just yet.
The Swedish automaker has a plant in South Carolina that also makes the Volvo EX90 and Polestar 3 SUVs, but it said in a report that it may add another model to its plant in order to try to mitigate tariff impact on pricing.
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