Price hikes, idled factories, layoffs: how car companies are responding to Trump’s tariffs

President Donald Trump’s 25 percent tariffs on all auto-related imports have been called “a debacle of epic proportions” and a sure-fire way to tank the auto market by crushing demand. Analysts have been predicting everything from $12,000 per vehicle price hikes to the possible “Cubanization” of the US car fleet.

Now that they’ve had a few days to process the news, the automakers are starting to get their ducks in a row and make some moves.

Here’s how each company is responding:

Now that the tariffs are in effect, the German automaker is holding all vehicles assembled in Mexico and overseas at US ports until further notice, according to Automotive News. Audi currently has 37,000 units in dealer stock and at port — which remain unaffected by the new import fees and are ready to sell. Audi reportedly said it would be marking unaffected units with a $0 “No Added Import Fee” option code for easy tracking.

“We are evaluating how to best proceed for our customers and our dealers,” Audi spokesperson Mark Dahncke said.

BMW hasn’t announced any specific response yet, but the company said last month that it expected a €1 billion hit to its 2025 earnings as a result of tariffs.

BMW spokesperson Phil DiIanni declined to comment, aside from sending a statement highlighting the automaker’s commitment to making cars in the US.

Ford was first out of the gate with a response geared toward people panic shopping, hoping to capitalize on pre-tariff sticker prices. The automaker launched a new program called “From America, For America” that offers employee pricing to everyone.

The promo runs April 3rd through June 2nd and offers “significant savings” on a number of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles, according to the company. EV customers will get the discount on top of the Ford Power Promise deal, which extends through June 30th and includes a complimentary home charger. Excluded from the limited-time offer are Ford Raptor models, 2025 Expedition and Navigator SUVs, and Super Duty trucks.

“We understand that these are uncertain times for many Americans,” Ford says on its website. “Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help.”

The discount may help Ford clear out some of its ample inventory, which stood at a 74-day supply of vehicles on its dealers’ lots at the end of March, compared to 50 days for GM, according to JP Morgan Global Research.

General Motors responded by telling employees at its assembly plant in Fort Wayne, Indiana, that it would increase production of light-duty trucks and add some temporary hourly workers to backfill for employees during summer vacation. The company is also considering shifting some of its truck production from Mexico to the US. GM is not making any physical upgrades to the plant, just adding additional temporary people to support it.

The Fort Wayne plant makes the Chevrolet Silverado and GMC Sierra trucks, which GM also manufactures at plants in Mexico and Canada. About half of GM’s large pickup truck production is done in Mexico and Canada, according to a recent Barclays report.

The Japanese automaker may not be merging with Nissan, but its already making moves to adjust to the tariffs. The company is planning on producing its next-generation Civic hybrid in Indiana instead of Mexico to avoid import duties, Reuters reported last month.

Meanwhile, Honda dealers are reassuring their customers that most of their most popular vehicles are made in the US. And spokesperson Chris Martin referred to the Autos Drive America trade group, which asserts that it is “impossible to rebuild those supply chains in a matter of weeks, especially with the added financial burden of tariffs.”

Hyundai gets the award for most “Trump-appeasing” announcement, with a commitment to spend $21 billion in the US (despite most of that investment already being underway). But while Trump was happy to brandish the announcement as proof his tariffs were working, the Korean automaker was also reportedly warning its dealers that prices could go up as a result of the new import duties.

“Hyundai Motor, including Kia, Hyundai and Genesis, remains committed to the long-term growth of the U.S. automotive industry through localized production and innovation,” spokesperson James Bell said in an email.

JLR is holding off on any immediate decisions, telling UK-based media that its local business remains “resilient.” But residents of the town where Jaguar operates its factory were dour about the news.

“I’m appalled. It will kill Jaguar Land Rover here in the town,” one resident told The Guardian. “There could potentially be job losses because JLR export enormously to America. The knock-on effect is going to be enormous.”

The luxury automaker is reportedly considering pulling its least expensive models, like its entry-level GLA, from the US market, Bloomberg said. But no decisions have been made yet, as spokesperson Amanda Painter said that Mercedes-Benz was still “currently assessing the impact of the US-tariff lines.”

Nissan initially said that it would cut a shift at the Smyrna, Tennessee, assembly plant where it makes its popular Rogue SUV once Trump’s tariffs went into effect. But now that the tariffs are here, the company reversed itself, committing to keeping two shifts at the factory.

Nissan is making some other hard decisions, though. The automaker said it would pause orders of the Infiniti QX55, which is built at its COMPAS plant in Aguascalientes, Mexico. Nissan said production is expected to continue for those models sold in other markets.

“We are reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability,” spokesperson Lloryn Love-Carter said in a statement. “Our objective is to implement the most effective industrial strategy to offer Nissan and Infiniti customers great product and strong value.”

Porsche has never been the cheapest sports car on the block, but tariffs are likely to put renewed pressure on its prices. Last month, the company’s executives told reporters that it was likely to pass the cost of tariffs along to its customers, according to The Wall Street Journal.

The parent company of Jeep, Dodge, Ram, Maserati, and others has good news and bad news to share in response to the tariffs. The good news is that it’s copying Ford’s idea of employee price discounts to the public. The bad news is that it’s temporarily laying off 900 workers while pausing production at several factories.

Stellantis said it would be pausing production at its Windsor, Ontario, plant for two weeks, from April 7th to April 14th, with operations resuming on April 21st. It’s also pausing production at its Toluca, Mexico, plant for the month of April. The layoffs will affect workers at the Warren Stamping and Sterling Stamping plants in Michigan, as well as the Indiana Transmission Plant and Kokomo Transmission Plant and Kokomo Casting Plant in Indiana.

“We understand that the current environment creates uncertainty,” Antonio Filosa, chief operating officer for the Americas at Stellantis, said in an email to employees. “Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes.”

Stellantis’ employee pricing program will run through April 30th. Discounts vary based on model and location.

Tesla, which is dealing with its own problems, hasn’t immediately responded to the news of the tariffs. That said, CEO Elon Musk has made several comments in response to commentary on X that Tesla is better insulated from the new fees as a result of selling only vehicles made in the US to American customers.

“Important to note that Tesla is NOT unscathed here,” Musk said. “The tariff impact on Tesla is still significant.”

The biggest automaker in the world is keeping its cards close to its vest for now. Toyota has no immediate plans to raise prices as a result of the tariffs, both Japanese media reports and Reuters confirm. Spokesperson Rick Bourgoise declined to comment further.

VW is adding “import fees” to the price of imported cars sold in the US, The New York Times reported. The exact amount will be determined later this month. It was the clearest example yet of Trump’s tariffs leading to higher costs for consumers.

Volvo is thinking about boosting its US-based production, including bringing new models to the factory it operates in Ridgeville, South Carolina, the company’s CEO told Bloomberg. Volvo already builds the EX90 SUV and Polestar 3 at the plant in order to take advantage of the federal EV tax credit.

Volvo spokesperson Sophia Durr declined to comment on any further plans.