Trump’s Tariffs Cost Automakers $35 Billion — Consumers Will Foot the Bill

The U.S. auto industry is still adjusting to the economic fallout from tariffs imposed under former President Donald Trump. An analysis of recent financial reports estimates these measures have cost automakers at least $35.4 billion.

To put that into perspective, this is more than 10% of the projected U.S. GDP for 2026, expected to reach $31.8 trillion.

Among the hardest hit is Toyota, which forecasts $9.1 billion in extra costs for its 2026 fiscal year. Detroit’s “Big Three” — Ford, General Motors, and Stellantis — collectively lost $6.5 billion last year. Other major players, including BMW, Honda, Hyundai-Kia, and Volkswagen, report added expenses exceeding $1 billion per brand.

The situation is further complicated by the elimination of the $7,500 federal EV tax credit, which has already cost the industry nearly $70 billion in restructuring. Raw materials are also affected: imported steel and aluminum now face a 50% tariff.

Cars imported from the EU, Japan, and South Korea carry a 15% tariff, while components from Canada and Mexico are hit with a 25% tariff.

Amid uncertainty around the USMCA agreement updates and shareholder pressure, automakers are raising prices. Many U.S. manufacturers are quietly boosting delivery fees, which in some cases exceed $3,000.

Industry analysts predict that in 2026 the market will shift toward high-margin, premium models, while affordable cars for the middle class will become scarce, driving up prices even in the used-car market.