Trump Tariffs Cost Automakers $35 Billion So Far

Automakers face financial strain from tariffs and regulatory changes under the Trump administration.

Mar. 17, 2026 at 7:36pm

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According to an analysis by Automotive News, the Trump administration's tariff policies have cost automakers $35.4 billion since the start of 2025. This comes as automakers also face over $70 billion in costs from changes to U.S. environmental regulations under the Trump administration.

Why it matters

The Trump administration's use of tariffs as a bargaining chip has had major financial implications for the highly globalized automotive industry. Automakers have largely absorbed these tariff costs so far, but this strategy is not sustainable long-term. The uncertainty around trade policy and environmental regulations has made it difficult for automakers to plan and invest for the future.

The details

The analysis found that Toyota is projected to take the largest hit, with $9.1 billion in tariff-related costs expected for its 2026 fiscal year. Detroit's Big Three automakers saw $6.5 billion in tariff costs in 2025. Other major automakers like Volkswagen, BMW, Mercedes-Benz, Subaru, Honda, Nissan, and Hyundai-Kia each reported or are expected to report over $1 billion in tariff expenditures.

  • The analysis covers the full-year costs of 2025 and projections for 2026 through mid-March.
  • The United States-Mexico-Canada Agreement (USMCA) is set for review by July 2026, which could bring further uncertainty.

The players

Trump Administration

The presidential administration of former U.S. President Donald Trump, known for its use of tariffs as a bargaining tool in trade negotiations.

Automotive News

An automotive industry trade publication that conducted the analysis of automaker financial reports.

U.S. Supreme Court

The highest court in the United States, which has challenged the Trump administration's authority to implement broad-sweeping tariffs.

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What they’re saying

“The back-and-forth approach from the federal government about emissions and environmental policy, as well as the sudden, oscillating approach to assigning tariffs in the first place, has not made the job of auto executives any easier over the last year.”

— Lucas Bell, Associate Editor (Road & Track)

What’s next

The United States-Mexico-Canada Agreement (USMCA) is set for review by July of 2026, which could bring yet another wrinkle if the U.S. opts to leave the deal as Trump has suggested. Given how much business U.S. automakers do in Canada and Mexico, that would be yet another major blow to the industry.

The takeaway

The Trump administration's use of tariffs and changes to environmental regulations have created significant financial strain for the global automotive industry. Automakers have had to absorb these costs so far, but this strategy is not sustainable long-term. The uncertainty around trade policy and environmental rules has made it difficult for the industry to plan and invest for the future.