Auto Makers Respond to the Tariffs

Shortly before this was published, the Trump Administration put a 90-day hold on the tariffs affecting commerce between the U.S., Mexico, and Canada. While that pause comes as a relief to the North American auto industry, there is little that can be done in three months to strategically alter the complex—and ultimately mutually rewarding—interplay of trade and manufacturing that has come to define auto assembly and marketing in the Western Hemisphere.

Auto Makers Respond to the Tariffs

Indeed, while carmakers have begun making some plans to continue operation under the specter of massive tariffs, most industry leaders are quietly hoping that the tax threat will blow over. This because the cost of moving production from Mexico and Canada back to the U.S. is massive, and because labor costs in the U.S. are much higher.

Shared below are a number of early reactions by carmakers to the tariffs. Many of these plans are short-term, and not all have been confirmed. Still, the responses seem to indicate that automakers are bracing for both higher prices and lower sales volume.

Audi

German luxury-auto builder Audi is “halting all imports.” Nothing more is yet known about the carmaker’s plans for the U.S. market, but it is important to note that Audi imports all of its U.S. lineup. The brand’s best-selling Q5 compact crossover is sourced exclusively from Mexico.

BMW

The German luxury-car builder plans to–at least temporarily—cover the cost of tariffs imposed on vehicles imported from Mexico. BMW currently imports its 2-Series and 3-Series small cars from south of the border. While BMW does build most of the crossovers it sells in the U.S. at its sprawling Spartanburg, South Carolina factory, it does import a number of models from Europe as well, including all of its EVs. No word, as yet, if BMW plans to cover the tariff costs on European imports as well.

Ferrari

Ferrari, perhaps the only carmaker in a position to actually absorb the cost of the tariffs has announced price increases on select brand models in the U.S. The brand’s Purosangue crossover, 12Cilindri grand-touring coupe, and F80 sports car will all see immediate 10-percent price hikes. Ferrari will, for now, hold the line on prices for the rest of its American-market lineup.

Ford

In a move that seemingly does little temper the impact of tariffs on production costs, Ford is offering “employee pricing” to U.S. customers. Like Nissan, which has also trimmed prices (see below), Ford may be working to bring shoppers into showrooms before the tariffs jam up the supply chain. Expect Ford to take further—and likely more meaningful—steps in responses to the tariffs.

General Motors

While the American multi-brand carmaker likely has many plans to help defray the impact of the trade tariffs, we only know about one for certain. The Detroit-based maker is working to expand light-duty pickup production at its Fort Wayne, Indiana assembly facility. The GM plant, which produces roughly 1300 pickups a day, is one of three factories producing the popular and highly profitable Chevrolet Silverado and GMC Sierra.

Half-ton versions of the Silverado and Sierra are also produced in Silao, Mexico, and Oshawa, Ontario.

Hyundai and Genesis

Korean carmaker Hyundai has announced plans to hold the line on prices until at least June 2. This includes the maker’s Genesis premium-car brand. Kia, which also falls under the Hyundai corporate umbrella, is expect to follow suit.

In a likely unrelated move, the Hyundai brand has also announced plans to eliminate the maker’s 36-month free-maintenance program for the 2026 model year. Dubbed Hyundai Complimentary Maintenance, the program covered all vehicle maintenance for the first three years of ownership.

Ineos

Start-up British truck maker Ineos retails two models stateside at the moment, the Grenadier SUV and Quartermaster pickup truck. As both are assembled in France, they are subject to the new tariffs. In response to the levy, Ineos is raising the price of the trucks 5 and 10 percent respectively.

Note that as a pickup truck, the Quartermaster is already subject to the U.S.’s long-standing 25-percent “chicken tax.”

Jaguar/Land Rover

While the Jaguar brand is currently on life support, with just one model in its 2025 portfolio, Land Rover—comprised of three sub brands: Defender, Land Rover, and Range Rover—moved almost 120,000 of its luxury crossovers and SUVs last year.

Yet, despite the momentum, the traditional British carmaker, now owned by Indian megacorporation Tata, plans to suspend all imports for an undetermined period of time. One source reports that the pause is for at least 30 days.

Mercedes-Benz

Good news for Mercedes-Benz customers, the German luxury-car maker has promised to hold the line on pricing through the 2025 model year, regardless of tariff status.

That said, rumors swirl that Mercedes will drop its two most affordable models from its U.S. lineup, that GLA small crossover and CLA small sedan. While not exactly affordable, the two M-B models represent the entry point for would be brand customers, and start at $42,400 and $45,550 respective. With the GLA and CLA absent from the lineup, the C-Class compact sedan becomes the most affordable Mercedes product, with a starting price of $49,600.

Also rumored is the potential for Mercedes to move production of the compact GLC crossover from Bremen, Germany, to the maker’s production facility in Tuscaloosa, Alabama.

Nissan and Infiniti

Presumable as a response to the tariff situation, Nissan has cut prices of its popular Rogue compact crossover and Pathfinder midsize crossover. It is unclear how these price cuts help mitigate the impact of the tariffs—especially for the carmaker—but perhaps it will draw consumers into Nissan showrooms before price hikes become necessary. Note that Ford, too, is offering discounts for an undetermined period of time.

An important point: Manufacturer price cuts do not necessarily lead to lower transaction prices. Dealerships are under no obligation to pass along discounts to customers, unless they come in the form of consumer rebates. Should there be a vehicle shortage as a result of the tariffs, expect prices increases regardless of any incentives offered by the manufacturer.

Nissan’s luxury brand Infiniti is halting imports of its Mexican-built models. Infiniti is no longer taking orders for the QX50 and QX55 compact crossovers, both of which are built in Aguascalientes. The Tariff pause may be permanent, as rumors have swirled regarding Infiniti dropping both of its slow-selling small crossovers.

Stellantis

The corporate umbrella covering traditional American brands including Jeep, Ram, Chrysler, and Dodge, is also parent to Alfa Romeo, Fiat and, Maserati, among other marques. Word on the street is that the carmaker will suspend assembly activities at its Windsor, Ontario, facility for an undisclosed period of time. The facility currently produces the popular Chrysler Pacifica minivan, and the recently redesigned Charger sports car.

Stellantis is also set to pause imports from the maker’s Toluca, Mexico factory. The facility currently builds two Jeep models, the popular Compass, and all-new Wagoneer S electric Crossover. No word on the potential duration of the production hold.

Rumors on the street suggest that a prolonged tariff situation could jeopardize the presence of Alfa Romeo and Maserati in the U.S. Both are low-volume brands selling only imported, premium sporty cars and crossovers, and would have difficulty absorbing, or passing along, tariff costs.

Stellantis management has made known its intention to help suppliers with their tariff burdens. What appears to be a generous offer is likely a necessary move, as auto suppliers operate at famously low margins, and would likely be unable to continue operation without some financial assistance. Other carmakers will likely follow suit. These are costs that automakers will ultimately have to pass along to consumers.

Volkswagen

The German carmaker has plans to pause all imports from the maker’s Puebla, Mexico factory. The operation currently build’s the brand’s most affordable models, including the Jetta small sedan, Taos small crossover, and the popular Tiguan crossover. There is no word on the intended duration of the import pause.

There is also no word on the status of models imported by Volkswagen from Europe. The maker currently imports the sporty Golf GTI and Golf R from the continent, as well as the heritage-design ID. Buzz electric minivan.

A prolonged break in imports would leave VW showrooms–and brand customers–with just the Atlas and Atlas Cross Sport midsize crossovers and the ID. 4 electric compact crossover to choose from.