Trump tariffs cause loss of USD12 billion from international automakers
(MENAFN) Since the introduction of US President Donald Trump’s trade tariffs, fourteen global automakers have collectively lost nearly $12 billion, with projections showing further significant losses by year-end, the Wall Street Journal reports.
Trump implemented a universal 10% tariff on all imported vehicles and parts starting April 5, followed by country-specific rates on April 9, affecting 185 countries and territories. According to the WSJ’s Thursday analysis, Toyota has been hit hardest, losing around $3 billion in the second quarter alone and anticipating total tariff-related losses of $9.5 billion by the fiscal year ending March 2026.
Volkswagen has reported $1.5 billion in losses, while Ford and General Motors each saw over $1 billion in second-quarter losses. Tesla has been least impacted, with losses estimated at $300 million. The report adds that the top ten global automakers, excluding Chinese firms, could see net profits decline by 25% this year.
The European Union and Japan are negotiating tariff reductions with the US. Currently, the US imposes a 27.5% tariff on EU-made vehicles, with Brussels seeking to reduce it to 15% in exchange for lowering its 10% tariff on American cars. Japan recently agreed to reduce US tariffs to 15% under a bilateral deal.
The automotive industry is also facing challenges from declining sales in Europe and China, amid growing competition from Chinese electric vehicle brands. Chinese automakers doubled their share of the European market to 5.1% in the first half of 2025. Meanwhile, Porsche’s sales in China dropped 28%, leading to dealership closures, and GM reported losses from shrinking demand.
On Thursday, the Trump administration broadened the tariff program, adding nearly 70 more countries, including the UK, Switzerland, Brazil, India, and Taiwan, to the list facing new tariffs.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
