“Reuters reported this week that as a result of Trump’s tariffs, Ford Motor Co. will raise prices on three of its models by as much as $2,000 apiece. Days earlier, the company said it expected the tariffs to reduce annual earnings by $1.5 billion, even after making efforts to avoid U.S. import duties.
Rivian, which makes luxury electric vehicles from a single plant in Illinois, also announced this week that it expected to deliver fewer vehicles and spend more money this year as a result of the tariffs.
Then on Thursday, The New York Times reported that Toyota “predicted a $1.3 billion hit from President Trump’s tariffs in April and May alone.”
In a March executive order, Trump slapped a tariff of 25 percent on all imported automobiles, as well as automotive parts like engines, transmissions, and electrical components. The only exception was for those covered under the U.S.–Mexico–Canada Agreement (USMCA), in which case the tariff only applied to the portion of the vehicle’s value not “attributable to parts wholly obtained, produced entirely, or substantially transformed in the United States.””
https://reason.com/2025/05/08/trumps-tariffs-are-already-raising-car-prices-and-hurting-automakers