Trump tariffs wipe out $12 billion from global carmakers
Trump announced the new tariffs in April, targeting 185 countries and territories. A universal 10% tariff on all imported vehicles and parts took effect on April 5, followed by country-specific rates on April 9.
According to the WSJ's analysis published on Thursday, Toyota has sustained the largest loss – around $3 billion in the second quarter alone – and expects a total tariff impact of $9.5 billion by the end of the fiscal year ending March 2026. Volkswagen has reportedly lost $1.5 billion, while Ford and General Motors have each reported losses of over $1 billion.
Tesla has been the least affected among major automakers, with an estimated $300 million loss.
The WSJ also says the ten largest global automakers, excluding Chinese manufacturers, could see net profits fall by 25% by the end of the year.
The EU and Japan have been negotiating tariff reductions with Washington. According to reports, the US currently imposes 27.5% on EU-made vehicles, and Brussels is pushing to lower it to 15% in exchange for cutting its own 10% tariff on American cars. Japan reached a similar deal in July, reducing US tariffs on its vehicles to 15% as part of a broader bilateral agreement.
The reported losses come amid declining sales of Western automakers in both Europe and China, under pressure from fast-growing Chinese electric vehicle brands. In the first half of 2025, Chinese manufacturers doubled their share of the European market to 5.1%. At the same time in China, Porsche's sales fell 28%, prompting dealership closures. GM and others have also reported losses due to shrinking demand.
On Thursday, the Trump administration expanded the tariff regime further, imposing new and additional tariffs on nearly 70 more countries, including the UK, Switzerland, Brazil, India, and Taiwan.
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