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U.S. Auto Tariffs Top $35 Billion in Costs as Prices Rise and Production Shifts

A Supreme Court decision preserving 25% duties signals sustained pressure that is starting to flow into sticker prices.

Overview

  • An Automotive News analysis through mid-March tallies at least $35.4 billion in tariff costs to automakers since 2025.
  • Toyota projects about ¥1.45 trillion, or roughly $9.1 billion, in tariff charges for its fiscal year ending March 31, the largest single-company hit reported.
  • GM, Ford, and Stellantis absorbed roughly $6.5 billion in 2025 as many manufacturers initially chose to hold prices rather than pass costs to buyers.
  • VIN-level data show sticker prices rising faster for vehicles built in Canada, Japan, Germany, and Mexico than for U.S.-made models, and U.S. Q4 sales of imported vehicles fell about 8% year over year.
  • Tariffs are driving strategy shifts, with GM planning to build a Buick crossover in Kansas by 2028, Volkswagen holding back the ID Buzz from the U.S. for 2026, Dodge dropping the Hornet, and Jeep moving the next Compass to U.S. production.