Needless to say, Trump’s new tariff regime has turned the world economy upside down with the automotive industry being the single industry to bear the brunt of this new regime. The implementation of higher taxes on imported vehicles have led to widespread outrage against Trump and his administration.
Domestic and international automakers are responding in various ways—ranging from price adjustments to halting production—in reaction to the Trump administration’s broad 25 percent tariff on imported vehicles, which is now in effect. Tariffs on specific car components like engines and transmissions are scheduled to begin on May 5.
Additionally, the administration’s broader “reciprocal” tariffs will not impact the auto industry and will not be added to the existing 25 percent duty. Here’s how all major automakers are reacting to Trump’s imposition of the new tariffs of automobile imports in the USA.
Audi
According to a report by US-based media outlet Automotive News, Audi is holding off all its models assembled in Mexico and other countries imported to the USA after April 2 at the ports. In the meantime, Audi models brought into the country before the said period will still reach dealership lots. According to AN, the automaker is labeling these non-tariffed vehicles with a “No Added Import Fee” note and a $0 option code on their invoices.
BMW
BMW has confirmed that it will absorb the tariff costs on vehicles manufactured in Mexico— but only until May 1. The affected models include the 3 Series sedan, 2 Series coupe, and M2, all produced at the company’s San Luis Potosí plant.
Volkswagen
According to Automotive News, Volkswagen models that are imported to the U.S. will have a fee added to their destination charge. The report also states that the German carmaker will pause rail shipments of vehicles imported from Mexico, while water shipments from the Central American nation and Europe will continue for now.
Mercedes-Benz
Bloomberg recently reported that Mercedes-Benz is planning to stop importing entry-level models like the GLA compact SUV and the CLA compact sedan. $42,400 and $45,550, respectively. However, the German luxury marque refuted this report. According to a recent report by Automotive News, Mercedes-Benz can possibly add a new model to its factory in Tuscaloosa, Alabama. Although not confirmed, reports suggest that Mercedes could start assembling the GLC soon at this plant.
Hyundai, Genesis
Hyundai has stated it won’t increase prices on its current lineup of new vehicles for at least the next two months. This announcement follows the company’s decision to end complimentary maintenance for 2026 and newer models. In response to the new U.S. tariffs, Hyundai is rolling out its “Customer Assurance” program, which will remain in effect until June 2. Its luxury brand, Genesis, is launching a similar initiative under the name “Genesis Cares.”
Jeep
Jeep has announced that it’s now offering its models at employee pricing for all consumers. These benefits will extend till April 30. Jeep will also pause production of two models– Compass and Wagoneer S— for the month of April. Both models are built in Mexico and shipped to America.
Ferrari
Ferrari was among the first automakers to react to Trump’s updated tariffs, increasing prices by 10 percent on several of its high-performance models. The Purosangue SUV, 12Cilindri grand tourer, and F80 hypercar are all subject to the price hike. However, other models like 296 GTB, Roma and SF90 remain unaffected by this price surge.
Ford & Lincoln
We recently reported that Ford is tackling Trump’s anarchic tariff regime by offering employee discounts to everyone. Called “From America, for America,” the plan will run through June 2 and should help save customers thousands of dollars. The list of eligible vehicles covers 2024–2025 Ford and Lincoln models, with exceptions for certain U.S.-built vehicles like the Ford Expedition, Lincoln Navigator, and Ford’s off-road-focused Raptor variants.
Nissan & Infinity
In response to the new tariffs, Nissan has lowered prices on two of its top-selling models. The Rogue now sees price cuts ranging from $640 to $1,930, while the larger three-row Pathfinder is reduced by $670 to $1,170. Both models are primarily manufactured in Tennessee, though some Rogue units are also produced in Japan.
Meanwhile, Nissan’s luxury division, Infiniti, has halted production of its QX50 and QX55 SUVs at its Aguascalientes, Mexico plant. According to reports, production of these U.S.-bound compact crossovers will only resume if the 25 percent tariff is lifted or reduced.
With inputs from Car and Driver
