How are Automakers Responding to the Tariffs?

Global automakers have been on a roller coaster ride in the past month as President Donald Trump flexed his executive power by instituting stiff tariffs that could dramatically impact corporations and consumers alike.

The president also mandated “reciprocal” tariffs of varying amounts on other goods produced in almost every country. But just days later, he put all except those for China on hold.

Most recently, he announced a modest tariff relief program for the 17 automotive companies that build vehicles in the U.S. Trump also said that tariffs would not “stack,” meaning that when two or more types of tariffs are applicable — imported autos with imported auto parts, for instance — only the larger tariff would apply.

Most automakers say it is too soon to do much planning for dealing with tariff impacts, although a number of companies have taken some early steps.

May 2025 updates: China, U.K. deals, and some auto tariffs loosened for the next two years

A tariff reduction deal with China lowers U.S. tariffs on most imported Chinese goods to 30% until August 10. It won’t impact the existing 25% tariff on imported autos and auto parts, the Trump administration said. Additionally, Chinese vehicles continue to be subject to tariffs imposed during the first Trump administration and the Biden administration. It’s unclear how much, if any, impact the 90-day deal will have on vehicles from U.S. automakers — the Buick Envision and Lincoln Nautilus — that are made in China for export to the U.S. The deal does, however, call for China to drop its ban on the export of rare metals — critical for EV batteries — to the U.S.

The Trump administration has also announced a tariff deal with the United Kingdom that cuts the import tariff on British vehicles and vehicle parts to 10% for the first 100,000 vehicles sent to the U.S. each year. The tariff climbs back to 25% on vehicles in excess of the base number. British automakers sent almost 100,000 vehicles, worth $9.8 billion, to the U.S. in 2024. The deal also lowers the tariff on British steel and aluminum to 10%. There likely will be additional nation-by-nation tariff modifications coming.

The U.K. deal was blasted by the trade group representing domestic automakers Ford, General Motors and Stellantis. "Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA [trade agreement] compliant vehicle from Mexico or Canada that is half American parts," said the American Automotive Policy Council. "This hurts American automakers, suppliers, and auto workers."

Earlier in May, the Trump administration announced a temporary reduction of the imported auto parts tariffs for vehicles assembled in the U.S. This story goes more into detail on those rollbacks. We also explain the program in our “Tariff rules” section below. Things can change at any time, but for now, the 25% tariffs on imported autos and on imported parts other than British makes and vehicles covered by the two-year reduction remain in place, and nearly every automaker will feel the impact. The story below goes more into detail on the tariffs themselves and how the major carmakers have reacted. We will update the story as news comes in.

Jump to:

Car tariff basics
Tariff rules based on the country of assembly
Will car prices go up due to tariffs?
Responses to tariffs by automaker

Car tariff basics

The tariffs are essentially taxes, usually paid by those who purchase the tariffed goods. They include 25% duties on imported vehicles and auto parts. There’s a separate 25% tariff on imported steel and aluminum, some of which ends up in car and truck production.

Some previously announced tariffs have been reduced, but import taxes on autos, auto parts, aluminum and steel remain. If they aren't reduced or eliminated, car companies will see higher prices, fewer customer choices, fewer sales, supply chain disruptions, and potentially other impactful changes.

Many vehicles sold in the U.S. will take less of a tariff hit because they are made here or in Canada or Mexico.

Trump said the tariffs are intended to spur import automakers to build more cars in the U.S. But even if they do, it will not likely have an immediate impact. A Toyota spokesman told Edmunds that building a new auto factory anywhere in the U.S. would take four or five years, and even increasing an existing plant’s production can take a year or more.

Tariff rules based on the country of assembly

U.S.-built autos: Vehicles with final assembly in the U.S. don’t face import duties, but automakers will still pay higher prices for components from overseas suppliers and for any imported aluminum and steel they use.

Automakers have generally expressed dismay over the impact the tariffs will have on them and their customers. In a bid to relieve some of that burden, the Trump administration has said that until April 30, 2026 — and retroactive to April 3 of this year — cars that are assembled in the U.S. with at least 85% of their parts made in the U.S., Canada or Mexico would not face any tariffs. That threshold rises to 90% in the second year and then goes away entirely, meaning there will be no relief after May 1, 2027, for vehicles subject to tariffs.

The actual formula is complex but basically says that in the program’s first year, the U.S. will reimburse automakers for up to 3.75% of tariff costs on imported parts equal to 15% of the value of a U.S.-built vehicle, dropping to 2.5% in the second year. Imported parts exclude those from Mexico and Canada that comply with the United States-Mexico-Canada Agreement (USMCA) negotiated during Trump’s first term to replace the longstanding North American Free Trade Agreement (NAFTA).

So while a U.S.-built vehicle with 85% USMCA-compliant content would be exempt from tariffs through April 30, 2026, a U.S.-built vehicle with only 50% of protected content would face the full 25% tariff on 35% of its value.

The full 25% tariff on imported autos and metals remains in place and will have a widespread impact as there’s hardly a vehicle sold in the U.S., made here or not, that doesn’t have at least a few parts and some steel and aluminum bits made in and imported from factories in other countries.

Vehicles from Canada and Mexico: Cars built in our neighboring countries to the north and south are subject to import tariffs but at lower rates under the United States-Mexico-Canada Agreement. Like all domestic automakers, most major import brands have large manufacturing operations in North America.

Vehicles not assembled in North America, except those from the U.K.: From giant manufacturers like Toyota to startups like VinFast, the tariff will be 25% on any vehicle shipped to the U.S. For almost every make and model, there will be a hit based on imported parts content.

Many industry analysts, including Edmunds Director of Insights Ivan Drury, expect the result to be higher prices and turmoil in the retail market — for new and used cars — as shoppers and dealers alike struggle to cope with rapidly advancing sticker shock and a scarcer supply of new models.

Will car prices go up due to tariffs?

We're still in the early days of these actions, but automakers are already taking various paths as they try to figure things out in these uncertain times. Some overseas car companies are temporarily halting shipments to the U.S. A few have already raised prices on some models. Others are reducing production and shuttering and consolidating plants.

To help make sense of the confusion, we’ve put our foot to the floor to put together an early look at the initial tariff responses of automakers selling cars in the U.S.

Many say they are taking a “wait-and-see” approach because of the president’s tendency to reverse course. Others have already taken initial steps such as raising prices, altering production, and cutting back on shipping their vehicles to the U.S. A few have announced layoffs. Several have responded with vows to continue absorbing tariff-related costs for a while to stabilize prices and encourage consumers to continue buying their cars.

Responses to tariffs by automaker

We’ve arranged the following companies alphabetically except for brands that are part of larger corporate groups since most groups apply the same responses to all their brands. Audi, for instance, isn’t first on the list because it is part of the Volkswagen Group. We aren’t listing brands not sold in the U.S. We're also including a link to the brand's homepage on Edmunds and their incentives pages if you'd like to see the latest deals they offer.

Aston Martin

The British luxury-performance brand hasn’t revealed its strategies for coping with the impact of the import tariffs. But at the end of March, it announced that it was selling its stake in its Formula One team to help raise money to offset growing losses and the financial hit it expects as the tariffs take hold. Aston Martin will benefit from a deal with the U.K., reducing the tariff on vehicles made there to 10%.

See all Aston Martin Incentives

BMW Group (BMW, Mini, Rolls-Royce)

The German automaker builds cars in Europe, China, Mexico, South America, South Africa, and the U.S. Its U.S. plant in Spartanburg, South Carolina, is the largest worldwide and assembles the BMW X3, X4, X5, X6, X7 and XM SUVs. Many are exported to other countries, making BMW one of the United States' largest auto exporters. Vehicles shipped from BMW’s Georgia plant would be subject to retaliatory tariffs other countries might impose on U.S.-made goods.

In a statement sent to Edmunds, BMW Group said the U.S. and others “should be discussing reducing trade barriers rather than creating more” and that cutting or eliminating tariffs “would benefit customers.”

The statement added that the BMW Group is “currently evaluating the [tariff] announcements in detail.”

Here’s what else we know:

BMW: The company confirmed to Edmunds that it is raising the manufacturer’s suggested retail price by 4% on 2 Series coupe and M2 models imported from its plant in Mexico. The increase is effective May 1, 2025. Other BMW vehicle sticker prices, also called MSRPs, will remain unchanged through at least May 31.

See all BMW incentives

Mini: The company told Edmunds that U.S. pricing will remain unchanged through May and thatthings are uncertains after that date. However, it has a sufficient inventory of tariff-free vehicles in the U.S. to last “well into” the second quarter. Minis built in Britain will benefit from the new reduced 10% tariff deal.

See all Mini incentives

Rolls-Royce: The British builder of ultra-luxe motor vehicles hasn’t announced any changes or said whether the import tax could affect the six-figure pricing of its U.S. lineup, which starts at $357,750 for the 2025 Ghost sedan. Rolls-Royce CEO Chris Brownridge said he believes the company is in “a great position” whatever happens with the U.S. tariffs. Rolls-Royce will benefit from the reduced 10% tariff on British vehicles.

See all Rolls-Royce incentives

Ferrari

All the Italian performance car maker’s vehicles are assembled in Italy and thus subject to tariffs. As soon as the tariffs were announced, Ferrari raised prices by up to 10% on most models sold in the U.S. but said it would absorb any tariff-related costs for the Roma, 296 and SF90, three of its most expensive models. The company said it expects a very slight negative impact on earnings for 2025 because of the import tariffs.

Ford Motor Co. (Ford, Lincoln)

Despite Ford advertising itself as the “most American” carmaker in the country, with the most U.S. models coming from U.S. plants, it still expects the tariff on imported vehicles and parts to add $1.5 billion to its operating costs this year. Expect small price hikes on most Ford and Lincoln vehicles starting in the second half of the year, with the first on a trio of popular Ford models, recently announced. While the company has the largest U.S. manufacturing base of any brand, it also makes cars and trucks in Canada, Mexico and Turkey and uses many parts subject to the imported auto parts tariff. In late March, it said it had more than two months’ stock of vehicles unaffected by the tariffs.

Ford’s initial response to the tariffs was to promote itself and its vehicles as “From America. For America” and offer employee discount pricing on many models.

CEO Jim Farley said in February 2025 that Trump’s tariffs would sow chaos, but later, in an interview in early April, said that Ford could withstand the impact of the taxes and might even gain some customers because of them.

Ford: Employee discount pricing for all customers on 2024 and 2025 models has been extended through July 6, 2025, but the offer excludes some U.S.-built models such as the F-150 Raptor, Super Duty pickups and Expedition SUV, as well as Mustang and Bronco specialty trims. Price hikes of 1% to 1.5% are now expected sometime in the second half of 2025. The first are being applied to three models assembled at Ford factories in Mexico. The company has told dealers there will be price hikes of several hundred dollars to up to $2,000 on Mustang Mach-E, Maverick pickup and Bronco Sport models built after May 2. Most hikes won’t be that steep, though, a Ford spokesman told Edmunds. Pricing for the Bronco Sport Heritage series will increase by $600, for instance, while the Maverick XLT AWD will increase by $700. The price hikes cover usual midseason increases as well as tariff-related costs, the spokesman said. They likely will show up on models arriving at U.S. dealerships in June.

See all Ford incentives

Lincoln: Lincoln is offering its employee discount to all customers through July 6, 2025, except for the U.S.-built Lincoln Navigator. Lincoln’s midsize Nautilus SUV is built in China. Price hikes of 1% to 1.5% are now expected sometime in the second half of 2025.

See all Lincoln Incentives

General Motors (Buick, Cadillac, Chevrolet, GMC)

General Motors makes cars and trucks all over the globe and has a large presence in China with its Buick division. Most of the vehicles it sells in the U.S. are made in North America, predominantly in the U.S.

Shortly after the president announced his tariff mitigation plan at the end of April, the automaker revised its 2025 earnings estimates, saying in an April 30 letter to shareholders that it believes it will take a $4 billion to $5 billion hit this year because of the tariffs on imported vehicles, imported parts, steel and aluminum. That cut GM’s annual profit estimate to between $10 billion and $12.5 billion, a sharp reduction from the $14.9 billion reported for 2024.

Despite that, CEO Mary Barra said in an interview on CNN that the company anticipates that retail pricing “is going to stay at about the same level as it is” now.

The drop in profits will hit GM’s approximately 45,000 United Auto Workers union employees hard. They receive annual profit-sharing checks from the company that last year hit record highs, running to as much as $14,500 for some.

The profit warning counters an earlier email response to our inquiry about tariff impacts. At that time, the company referred to a comment Barra made while announcing 2024 earnings: "With respect to possible tariffs, we are working across our supply chain, logistics network, and assembly plants so that we are prepared to mitigate near-term impacts. Many of these actions are no cost or low cost" to GM.

GM said it complies with USMCA, which calls for a minimum of 75% domestic parts content. The tariff on imports would apply — for GM and other automakers with North American production — only to the value of vehicles or parts content that originated outside of the U.S., Canada or Mexico.

As for GM's individual brands:

Buick: Except for the Enclave SUV, Buick models are assembled in China and South Korea and are subject to the full 25% imported vehicle tax. GM hasn’t commented publicly, but some industry watchers speculate that the tariffs could spell the end of the 126-year-old brand, which sells more vehicles in China than in the U.S.

See all Buick incentives

Cadillac: GM hasn’t explicitly commented on the Cadillac brand, but although the CT4 and CT5 sedans are built in the U.S., they have substantial Chinese-made content subject to the 25% tariff on imported auto parts. The Optiq EV is built in Mexico.

See all Cadillac incentives

Chevrolet: There is no word yet on production or pricing changes. Some Silverado pickups are built in Mexico, and some Equinox SUVs are built in Canada. GM has said it is increasing Silverado 1500 production in the U.S. and is cutting a shift at its Oshawa pickup plant in Canada, reducing production of the Silverado there by about 48,000 units a year.

See all Chevrolet incentives

GMC: No word on any tariff-driven changes. Some GMC Terrain SUVs are built in Canada.

See all GMC incentives

Honda Motors (Acura, Honda)

The company has a large U.S. manufacturing plant in Ohio but imports several vehicles from Japan for the U.S. market. It reportedly has decided to move production of the Civic Hybrid to the U.S. from Japan, partially in response to the tariffs, and a spokesman told Edmunds it has no plans “at this time” to raise prices. The company has revised its financial forecast for its fiscal 2025-26, saying it expects the tariffs to erase $4.4 billion in revenue and operating profit to decline by almost 60%. Honda otherwise has declined to discuss its plans for handling tariff-related issues and referred Edmunds to the Alliance for Automotive Innovation, a trade association that represents Honda and most other carmakers doing business in the U.S.

The Alliance said in a statement released the day after the tariffs were announced, "Automotive facilities and global supply chains create American jobs, provide Americans with vehicle choice, and the big one — support auto affordability in America. We are committed to building and investing in the U.S., but these facilities and supply chains are massive and complex and can’t be relocated or redirected overnight.

"Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports.”

See all Acura incentives

See all Honda incentives

Hyundai Motor Group (Genesis, Hyundai, Kia)

The South Korean company has been building vehicles in the U.S. at Hyundai Motor Manufacturing Alabama since 2005 and opened the Hyundai Motor Group Metaplant America near Savannah, Georgia, this year. The Metaplant includes an EV manufacturing hub. The Hyundai Group's total U.S. manufacturing capacity is about 1.2 million vehicles annually across all three of its brands, but it still imports many vehicles from South Korea.

Genesis: No MSRP increases until June 2. Dropped its three-year complimentary maintenance for new cars beginning with the 2026 model year.

See all Genesis incentives

Hyundai: No MSRP increases until June 2. Canceled its three-year complimentary maintenance for new cars starting with 2026 models.

See all Hyundai incentives

Kia: Has not yet announced any response to the tariffs.

In an e-mailed response to Edmunds’ query about its plans, Kia said that, as part of the Hyundai Motor Group, it is “closely monitoring new policy developments” and continually reviews business strategies “To ensure success … and long-term profitability.”

See all Kia incentives

Ineos

The British company makes its high-end SUVs in France. It has raised the prices on its Grenadier 4X4 SUV by 5% and on its Quartermaster pickup—already subject to the longstanding 25% tax on imported trucks — by 10%. The company said U.S. orders for the Grenadier placed before April 3, 2025, will not be subject to the price hike. Ineos also benefits from the new tariff deal with the U.K.

Jaguar and Land Rover (JLR)

The company, a unit of India’s Tata Motors, has plants in the United Kingdom, China, Brazil, India and Slovakia. In an email, it said it had initially stopped the export of Jaguar and Land Rover vehicles to the U.S. while it planned to deal with the tariffs. However, it has since reportedly resumed shipping vehicles to the U.S. after a month-long halt. It, too, will benefit from the new British tariff deal.

See all Jaguar incentives

See all Land-Rover incentives

Lotus Cars

Lotus builds the Emira and other low-volume sports cars in England and said through a spokesperson that it is temporarily pausing all shipments of cars to the U.S. as it assesses the ongoing tariff situation. Lotus also cited volatile market conditions, including the U.S. tariffs, for the layoff of 270 employees at operations across the United Kingdom. Now the company will benefit from the reduced tariff on British autos. Lotus is owned by Geely Holding Co., a Chinese conglomerate that also has a large stake in Volvo and Polestar.

Lucid

Lucid has not responded to our inquiry into tariff mitigation plans. The company builds its luxury electric cars in Arizona, but it will likely be impacted by the tariff on imported parts or the separate tariff on imported steel and aluminum, whichever is greater. Lucid has told investors that it is raising its estimate of the tariff-related impact on its gross margins for 2025 to between 8% and 15%, up from an earlier estimated impact of 7% to 12%.

Still, the automaker said it is pushing ahead with plans to launch a new model, a more affordable midsize SUV, in 2026. A Lucid spokesman told Edmunds that the company has promised to hold retail prices steady at least through May. Lucid’s interim CEO, Marc Winterhoff, also told the Reuters news service that it has agreements with the suppliers of its battery cells and graphite to bring production to the U.S. and that plant construction is already underway.

See all Lucid incentives

Mazda

Mazda builds about 20% of the cars it sells in the U.S. — the CX-50 and CX-50 Hybrid crossovers — at an Alabama plant it owns jointly with Toyota. The rest come from plants in Mexico and Japan. The U.S. is Mazda’s largest market.

Mazda hasn’t outlined any specific plans, saying that, like many other automakers, it is still assessing things. Its chief financial officer told one online news site that the financial burden of the Trump tariffs is “too big to swallow” and that the company will likely have to pass on some of the costs to customers by raising prices on some models. A spokesman for Mazda North America said that the company also intends to “strengthen the resilience of our business by reducing costs that we can control ourselves” while minimizing impact on its customers and suppliers.

For now, Mazda Canada has said it will stop importing CX-50 crossovers built in Alabama. The company cited the impact of Canada’s retaliatory tariffs on U.S. imports and the increased cost of the vehicles due to the tariff on parts that Mazda imports into the U.S. to assemble them.

See all Mazda incentives

McLaren

McLaren, the British supercar maker recently sold to an Abu Dhabi investment group, sells more than a third of its cars in the U.S. According to reports in British media, it has decided to suspend shipment of its Lotus Emira to the U.S., begun a “restructuring process” at its British manufacturing plant, and laid off its entire contract staff, which accounts for a large portion of its total workforce. The new 10% tariff deal with the U.K. may improve McLaren’s fortunes.

See all McLaren incentives

Mercedes-Benz

Mercedes-Benz said it will relocate production of an unnamed “core” vehicle from Europe to its Alabama assembly plant in 2027. The move will help it increase its already sizable U.S. production to mitigate the impact of the new auto tariffs. Because the plant is set up for SUV production, speculation on the identity of the new vehicle centers on the GLC crossover.

The 30-year-old plant currently assembles the GLE, GLS, GLE Coupe and Mercedes-Maybach GLS SUVs, as well as the EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV, for all global markets. It produced about 260,000 vehicles in 2024, with about 60% shipped to markets outside the U.S. Some parts used in the vehicles are imported from plants in Europe. A separate unit, Mercedes-Benz Vans, builds the Sprinter and eSprinter vans for U.S. consumption at a plant in South Carolina.

The company also expects the U.S. import auto and parts tariffs to reduce its gross profit margin by roughly 2.5% in 2025 before any mitigation. It posted an 18.6% gross margin in fiscal 2024.

Despite that, the company also said it plans to maintain current 2025 model year pricing “until further notice” and is “evaluating all options and will adjust to changing market conditions and the competitive landscape if needed.”

See all Mercedes-Benz incentives

Mitsubishi Motors

A spokesman at Mitsubishi USA headquarters in Tennessee told Edmunds the company intends to hold pricing at present levels “for the moment” and that Mitsubishi is holding up shipments at the ports “until we have sufficient visibility on the tariffs and next steps.” The company already has a three-month supply of cars and trucks in the U.S. “to not impact customer choice,” he said.

But Mitsubishi isn’t ruling out future price increases in the U.S.

The tariffs, the spokesman said in an email exchange, “will negatively impact the company’s business, as well the business of its nearly 330 dealer partners across the nation and the purchasing power of more than 100,000 customers each year … (and) may result in increased and unnecessary costs for the end-user, the American customer.”

See all Mitsubishi incentives

Nissan (Nissan, Infiniti)

Nissan has plants in Japan, the U.S. and Mexico. A spokesman for the company said about half its U.S. sales are of models built at U.S. plants in Tennessee and Mississippi and that it has “ample inventory,” so prices won’t immediately be affected by the tariffs.

Nissan has, however, suspended its financial forecast and said that it expects to post an operating loss in the first quarter of fiscal year 2025-26 due in part to the tariff costs.

In response to the administration’s tariff relief program for U.S.-assembled vehicles, Nissan referred Edmunds to a statement from its trade association, Autos Drive America:

“International automakers remain committed to manufacturing in America, supporting more than 2 million jobs, producing nearly 5 million vehicles, and investing billions in auto parts production. [The] action by President Trump provides some welcome relief for automakers, but more must be done in order to turbocharge the U.S. auto industry, including creating a pro-growth and regulatory climate for U.S. manufacturing to thrive. We look forward to continued collaboration with the administration on investment policies that promote stability, affordability, competitiveness, and continued growth of jobs in the U.S. auto industry.”

In response to the original tariffs, the automaker has also paused U.S. orders for new Infiniti SUVs built in Mexico and canceled plans to reduce production of the Rogue SUV at its Smyrna, Tennessee, factory, to maximize its tariff-free U.S.-built supply.

Nissan has also reduced the prices of the Rogue and the three-row Pathfinder SUV, most of which are built in Tennessee.

See all Nissan incentives

Infiniti: The QX50 and QX55 SUV orders have been temporarily halted, but production will continue for models shipped to other countries.

See all Infiniti incentives

Polestar

The Swedish EV maker Polestar has notified investors that it has halted issuing financial guidance information for 2025 due to the “current uncertainty surrounding international tariffs and government regulations impacting Polestar’s business and market dynamics.” The company said it still expects to see global retail sales volume grow by 30% to 35% through 2027.

Polestar shares a major investor — China’s Zhejiang Geely Holding Group — with Volvo and builds the Polestar 3 SUV at Volvo’s U.S. plant in South Carolina. The Polestar 4 crossover SUV will be built in South Korea starting this summer. Polestar’s only other production model right now is the Polestar 2, which is built in China. In an email, a Polestar USA spokesman said it is no longer taking orders in the U.S. for that model.

The spokesperson added that some Polestar 2 models are still in stock at its U.S. retailers, but the 3 and 4 will be the priority in the U.S. moving forward. Polestar is also looking at boosting production in South Carolina and previously raised prices on the Polestar 2 by $15,000 to account for the impact of the 100% tariff on Chinese EVs imposed by the U.S. during the Biden administration.

See all Polestar incentives

Rivian

Rivian, the California-based high-end electric truck and SUV maker, builds its vehicles at a plant in Normal, Illinois, but it heavily depends on imported parts, including batteries. In early May, Rivian announced that it is investing $120 million in a new parts supplier industrial park near its plant so that key suppliers can move manufacturing to the U.S. to lower the company’s parts costs.

See all Rivian incentives

Stellantis (Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, Ram)

The global auto group makes cars and trucks worldwide and markets seven of its brands in the U.S. It has ended the “Freedom of Choice” purchase incentive program it began in response to the initial tariff announcement. In response to the recent tariff adjustment announcement, the company issued a statement saying it “appreciates the tariff relief measures decided by President Trump” and that it looks forward to “continued collaboration with the U.S. Administration to strengthen a competitive American auto industry and stimulate exports.” Stellantis will “further assess the impact of the tariff policies on our North American operations,” the statement said.

A spokeswoman for the company confirmed to Edmunds that it has temporarily shut down production at its Toluca, Mexico, assembly plant but has reopened the Windsor, Canada, plant that was temporarily shuttered along with the Toluca plant in early April. Stellantis has also recalled about half of the 900 workers who were idled at four parts fabrication plants in Michigan and Indiana because of renewed demand from the Windsor assembly plant.

Stellantis has denied reports that it plans to sell its Alfa Romeo and Maserati brands, and Alfa executives recently said the company intends to begin producing one model in North America next year.

Alfa Romeo: To avoid import tariffs, the Stelvio SUV will be built in North America in 2026. Two other models sold in the U.S. will continue to be built in Italy.

See all Alfa Romeo incentives

Chrysler: Production of the Pacifica and Voyager minivans — its only models — has resumed. Both are built in Canada.

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Dodge: Charger Daytona EV production in Canada has resumed.
See all Dodge incentives

Fiat: Nothing announced but its only U.S. model, the 500e EV, is built in Italy.

See all Fiat incentives

Jeep: Production of the Jeep Compass and Jeep Wagoneer S has been halted in Toluca, Mexico, since April 7.

See all Jeep incentives

Maserati: Nothing announced.

See all Maserati incentives

Ram: The truck maker has not made any announcements, but the Ram brand faces many tariff-induced costs. While the popular Ram 1500 pickup is built in Michigan, the 2500, 3500, and other heavy-duty Ram pickup models and the ProMaster work van are built in Mexico, and the ProMaster City van is built in Turkey.

See all Ram incentives

Subaru

The company has an Indiana manufacturing plant that supplies about 45% of the vehicles it sells in the U.S. The rest, along with numerous components, including engines and transmissions that go into the Indiana-built vehicles, come from Japan.

Subaru of America did not respond to Edmunds' inquiry about its tariff-mitigation plans. Despite rumors that it is not taking new orders, a report in Road & Track quotes a Subaru of America spokesman as saying that the company has stopped accepting new custom-build orders for the time being. However, new cars are still being sold and shipped to the U.S. from Japan. A promise to hold off on any tariff-related price increases has expired, but pricing seems stable at this point.

See all Subaru incentives

Tesla

Tesla disbanded its public relations team several years ago and, as such, did not respond to our request for comment. The EV company makes cars in the U.S., Europe and China. Its U.S. models are built at its plants in California and Texas. It gets most of its parts and components from suppliers, including its own factories, in the U.S., Canada and Mexico. More than 80% of the content in most Tesla models is North American, so there's a chance they escape tariffs altogether under the most recent modification of the imported parts tariff rules.

However, the automaker still imports components and uses some imported steel in its manufacturing, so it will feel some impact from the tariffs, which CEO Elon Musk, a major adviser to President Trump, is reported to have opposed.

“Important to note that Tesla is NOT unscathed here,” Musk posted on X when the auto tariffs were announced. “The tariff impact on Tesla is still significant.”

The company has not announced any plans to raise prices in the U.S. It has said it stopped selling the Model S and Model X in China in response to China’s imposition of a 125% tariff on U.S. imports, which was a response to the 125% U.S. tariff on autos imported from China.

See all Tesla incentives

Toyota Motor (Lexus, Toyota)

Toyota has a vast U.S. presence, building more than half of the vehicles it sells in the U.S. at plants in Indiana, Kentucky, Mississippi, Missouri and Texas and builds engines and transmissions in West Virginia, Tennessee and Alabama. Toyota is also completing an EV battery plant in North Carolina. But it still imports tens of thousands of vehicles from Japan, and a mountain of imported parts and components are used in the vehicles it builds here.

The company said in its May financial report that the tariffs will cut full fiscal year profits by 21% and estimated the cost at about $1.3 billion for the first two months they’ve been in effect. Toyota’s fiscal year ends in March 2026.

In response to the announcement of some tariff relief for U.S.-assembled vehicles, a spokesman for Toyota Motor North America told us that “the recent tariff-related news is certainly encouraging and a step in the right direction. However, the 25% tariffs on auto imports remain highly disruptive to the industry. We haven't made any significant announcements since the tariffs were enacted, but we continue to deploy our ’build where we sell’ approach to local manufacturing.”

Earlier, the company said it had no plans “for now” to raise Toyota or Lexus prices.

See all Lexus incentives

See all Toyota incentives

VinFast

VinFast, the Vietnam-based EV maker, sends two all-electric SUVs to the U.S. but has scant sales. Its imported SUVs would be subject to the auto tariff. In a brief statement to Edmunds, the company’s U.S. spokesman said only that VinFast “is aware of the situation” and is “seriously studying the matter.”

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Volkswagen Auto Group (Audi, Bentley, Bugatti, Lamborghini, Porsche, Volkswagen)

Volkswagen Group has issued a profit warning to investors, saying that its profit margins this year are likely to be toward the bottom of its guidance range. The company has also said that U.S. trade policy has made it difficult to make financial predictions. The Volkswagen brand has said it will hold retail prices in the U.S. steady at least through May.

Audi: Has no U.S. production but makes the Q5 SUV and Q5 Sportback models for the U.S. in Mexico. The rest come from its European plants. A recent German newspaper article — which we fed through a German-to-English translation program — reports that Audi has been holding back the distribution of vehicles that arrived in U.S. ports after April 2, 2025, and has advised its U.S. dealers to focus on selling existing stock while it assesses things. Audi reportedly is also considering passing on some of the tariff-related cost increases to U.S. buyers and increasing its North American production by using some of VW’s U.S. plant capacity or possibly building a new plant. In the meantime, Audi has increased the pricing on its best-selling U.S. model, the Q5 SUV, by almost 15% but says the hike is not related to the U.S. tariffs. The Q5 is built in Mexico for global distribution.

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Bentley: The French maker of multimillion-dollar hypercars has yet to comment on tariff-mitigation plans beyond parent Volkswagen Group’s statement that no final decisions have been made. Bentley should benefit from the new U.S.-U.K. tariff reduction deal.

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Bugatti: The French maker of multimillion-dollar hypercars has yet to comment on tariff-mitigation plans beyond parent Volkswagen Group’s “no final decisions” statement.

Lamborghini: Following its best sales year ever in 2024, Italian supercar maker Lamborghini says it is looking at lower volumes and increases to its already hefty prices to help it handle the impact of the Trump administration’s tariffs. Lamborghini CEO Stephen Winkleman told a media group in Australia that a potential solution would be to find a price hike that enables the company to maintain profits from U.S. sales while not alienating customers, the website News.com.au quotes Winkleman as saying.

Porsche: The German sports car brand does not manufacture in the U.S., but it increased its exports to the U.S. in the first quarter to build up a tariff-free inventory here. On its corporate website, Porsche said the increase represented a 37% hike in exports to the U.S. compared to the first quarter of 2024.

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Volkswagen: Builds cars for the U.S. in Tennessee, Mexico and Europe and has said it will hold U.S. pricing steady, even on its imports, at least through May. It has discussed adding import fees to the pricing of vehicles affected by the tariffs but has not made a decision. It continues to hold up shipments to the U.S. of the Mexico-built Jetta sedan and Tiguan and Taos SUVs. In response to the tariff relief for imported parts, a spokesman for Volkswagen of America told Edmunds that the company appreciated the decision and is “assessing the impact of this recent move and how we’ll adjust the business. No final decisions have been made. We are committed to our customers, our dealers, and our employees in North America.”

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Volvo Cars

Volvo: The Swedish company assembles vehicles in Sweden, Belgium, China and the U.S. Its CEO said in early April that it intended to increase production at its U.S. plant near Charleston, South Carolina, to “get around the import tariffs” but recently said it will take two years to complete the expansion. Volvo currently makes the S60 sedan and the all-electric EX90 SUV there, but most of the cars and SUVs it sells in the U.S. are made in Europe.

The company in early May said it will lay off about 5% of the production workers in South Carolina — about 125 people — in response to “changing market conditions and evolving trade policies.” The layoffs are not connected to an earlier $1.88 billion cost-cutting plan, the company said.

Volvo earlier told Edmunds in an email that it is “continuing to evaluate ways we can enhance utilization of our U.S. plant, which has a capacity of 150,000 cars per year.”

A Volvo spokesman in the U.S. also said that it is looking into the effects of the recent changes in tariffs "though it is too soon to comment further” and that Volvo "follows government rules and pays all required duties on all imported vehicles and on all parts as required by law. This is standard practice and what we do in all markets where we operate.”

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