what car companies will be affected by tariffs

[JosephineAnn]

Tariffs primarily affect car companies that rely heavily on importing vehicles into the U.S. rather than manufacturing them locally. The most impacted are European luxury brands like Volkswagen Group (Audi, Porsche), BMW, and Mercedes-Benz, as well as volume manufacturers like Volvo and Subaru. Asian brands, including Hyundai, Kia, and Mazda, which import a significant portion of their U.S. sales, also face substantial exposure. In contrast, American automakers (General Motors, Ford, Stellantis) and foreign brands with major U.S. production plants (Toyota, Honda, BMW, Mercedes-Benz, Volkswagen) are better insulated, though they can be affected by tariffs on imported parts.

The impact isn't uniform. A 25% tariff on imported cars and parts, for example, would drastically increase the cost of vehicles built overseas. This creates a competitive disadvantage for pure importers, potentially raising consumer prices and reducing sales volume. However, brands with robust U.S. manufacturing footprints can leverage their local production as a key selling point.

The following table outlines the import dependency and U.S. manufacturing presence of major automakers, illustrating their relative vulnerability to tariffs.

Automaker / Brand	Estimated % of U.S. Sales from Imports	Key U.S. Production Plants / Models	Notable Tariff Impact
Subaru	~75%	Indiana (Outback, Ascent, Impreza)	High impact on imported models (Crosstrek, WRX)
Mazda	~70%	Alabama (joint venture with Toyota)	High impact; relatively small U.S. production footprint
Volvo	~65%	South Carolina (S60)	Significant impact on popular SUV imports (XC40, XC90)
Volkswagen	~50%	Tennessee (Atlas, ID.4)	High impact on Audi, Porsche brands and Golf R, Arteon
Hyundai / Kia	~45%	Alabama, Georgia, Georgia	Significant impact on key models like Palisade, Telluride
Mercedes-Benz	~40%	Alabama, South Carolina	Impact on high-volume SUVs (GLE, GLS) built in U.S. is low
BMW	~30%	South Carolina	Largest auto exporter from U.S.; minimal impact on X-model SUVs
Honda	~20%	Ohio, Alabama, Indiana	Well-insulated with extensive U.S. manufacturing
Toyota	~15%	Kentucky, Texas, Indiana	Very low exposure due to deep U.S. production integration
Ford / GM	< 10%	Nationwide	Least affected; primarily impacted by tariffs on specific parts

Ultimately, tariffs act as a forcing function, encouraging automakers to localize production. While they can protect domestic manufacturing in the short term, they often lead to higher prices for consumers across the board, as even U.S.-built cars rely on global supply chains for components.

[DiAlessandra]

From a consumer's view, it's the brands you see less of on American assembly lines. Think about the cool European cars—Audi, Porsche, some BMWs and Mercedes models—that are shipped over. They get hit hard. The same goes for Subaru, Mazda, and Volvo, which import many of their popular SUVs. If you're eyeing one of those, a tariff could mean a noticeably higher sticker price. The trucks and SUVs built right here in the States are the ones that stay more affordable.

[Diana]

Looking at the supply chain, the impact is broader than just finished cars. A tariff on auto parts is a huge deal. Even Ford and GM, who build vehicles domestically, import specialized components like electronic modules or engines for certain models. This increases their production costs, forcing price hikes on American-made cars, too. So, while import-focused brands bear the brunt, virtually every automaker is affected to some degree, making the entire market more expensive.

[VanRonan]

It's a strategic chess game. Tariffs most directly threaten brands with low U.S. manufacturing capacity. This pushes companies like Mazda and Volvo to accelerate plans for stateside production to avoid the penalties. For brands already deeply invested here, like Toyota and Honda, it's a competitive advantage. They can market their cars as "tariff-proof," potentially gaining market share. The policy effectively rewards prior local investment and punishes reliance on imports.

[DeJulianna]

The long-term effect reshapes the industry landscape. Aggressive tariffs protect domestic automakers in the immediate term but risk making the U.S. market insular and less competitive. It forces international brands to localize, which creates American jobs but can also lead to a homogenization of vehicle offerings as companies prioritize cost-effective, high-volume models for local production. The unique, niche imported vehicles become luxury items, reducing consumer choice. The real impact is on the diversity and innovation available to the American car buyer.