Tariffs enacted by President Donald Trump have cost automakers $35 billion so far, with projections for the future financial impact climbing even higher, according to some analysts.
The details: An analysis of automaker financial reports, covering full-year 2025 tariff costs and some projections through March 2026, highlights the toll to date, Car and Driver reported.
Toyota, for one, has taken the biggest hit from tariffs, with projected costs of ¥1.45 trillion ($9.1 billion) for its 2026 fiscal year, which ends March 31.
Tariff-related costs for the Detroit Three (General Motors, Ford, and Stellantis) totaled $6.5 billion in 2025.
And several other automakers, including BMW, Honda, Hyundai-Kia, Mazda, Mercedes-Benz, Nissan, Subaru, and Volkswagen, either reported or projected tariff costs of more than $1 billion.
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Why it matters: The longer tariffs stay in place, the more their effects are likely to filter into showroom pricing, incentives, and inventory decisions, making it more difficult for automakers to absorb the hit.
In fact, a September report from J.P. Morgan estimated that combined tariffs on vehicles and parts would total about $41 billion in the first year and continue rising annually, with the added costs eventually becoming a norm absorbed by consumers and automakers alike.
From there, tariff costs are projected to rise to $45 billion in year two and $52 billion in year three, up 7.3% from year two, according to J.P. Morgan.
The financial institution also projects that automakers and consumers will share the burden equally, contributing to a projected 3% increase in new-vehicle price inflation.
What they’re saying: “For now, suppliers are likely to be almost entirely reimbursed by their automaker customers for any direct tariff costs incurred,” said Ryan Brinkman, head of U.S. Autos & Auto Parts, J.P. Morgan Global Research, regarding the September report.
“But automakers cannot expect similar treatment from their tapped-out customers, likely leading to several hundred basis points of margin compression from variable costs rising in excess of price.”
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