How Automakers Are Responding to Trump’s New Tariffs: Price Hikes, Production Shifts, and Industry Shakeups

Trump’s 2025 Tariffs on Imported Vehicles: A New Shockwave in the Auto Industry

The automotive industry is once again in the spotlight following President Trump’s announcement of a 25% tariff on all imported passenger vehicles and light commercial vehicles, effective April 2, 2025. While the tariffs on imported parts such as transmissions and engines won’t take effect until May 5, automakers are already scrambling to manage the fallout.

From production pauses and price increases to creative promotional campaigns, here’s how domestic and international automakers are responding to the new economic landscape.

Ford & Stellantis Go All-In on Discounts

Ford was among the first U.S. automakers to take action. Its bold "From America, For America" campaign offers employee pricing to all buyers through June 2. The promotion includes most 2024–2025 Ford and Lincoln vehicles, although premium models like the Expedition, Navigator, and Raptor variants are excluded.

Meanwhile, Stellantis, which owns Chrysler, Dodge, Jeep, and Ram, launched a similar strategy. They're offering employee pricing on eligible models through April 30, aiming to offset potential consumer hesitation due to rising prices.

Stellantis is also pausing production at several Canadian and Mexican plants. The Chrysler Pacifica, Dodge Charger EV, Jeep Compass, and the electric Jeep Wagoneer S will all see temporary halts, highlighting the ripple effect of the tariffs across North America.

Audi, BMW, and Mercedes-Benz: The European Approach

Audi is holding all vehicles imported after April 2 at U.S. ports. Vehicles shipped before that date will still be delivered to dealerships, clearly marked with a “No Added Import Fee” label. Parent company Volkswagen Group expressed concern over the negative economic impact and urged for stable trade relations.

BMW is "price protecting" vehicles built in San Luis Potosí, Mexico—including the 3 Series, 2 Series Coupe, and M2—but only through May 1. After that, BMW may reevaluate its strategy, depending on tariff developments.

As for Mercedes-Benz, while early rumors suggested it might stop importing its most affordable models (GLA and CLA), the brand has denied those claims. However, internal considerations for shifting GLC-class SUV production to its Tuscaloosa, Alabama plant are reportedly on the table.

Hyundai, Genesis, and Nissan: A Strategic Hold

Hyundai and Genesis have both committed to holding prices steady for at least two months, launching “Customer Assurance” and “Genesis Cares” programs, respectively, effective until June 2. Hyundai CEO José Muñoz highlighted the company’s $21 billion U.S. investment plan, noting their strategy to localize production and minimize future disruption.

Nissan, on the other hand, has taken direct action by cutting prices on its U.S.-built Rogue and Pathfinder models. However, lower-cost models like the Kicks, Versa, and Sentra, which are built in Mexico, may be affected in the near future. Its luxury brand Infiniti has already halted production of the QX50 and QX55, both built in Mexico, indefinitely.

GM and Volkswagen: Playing It Cautiously

While GM hasn’t announced any price changes, it’s reportedly increasing U.S. production of the Silverado and Sierra trucks at its Indiana plant. These shifts aim to balance out costs from Canadian and Mexican operations. Through the American Automotive Policy Council (AAPC), GM emphasized that tariffs should not undermine the North American automotive integration established by the USMCA agreement.

Volkswagen, meanwhile, is adjusting destination charges to offset the new tariff costs. It has paused rail shipments of vehicles from Mexico but continues water-based imports from Mexico and Europe. The impact is expected to vary across models like the Jetta, Taos, Tiguan, Golf GTI, Golf R, and ID.Buzz.

Ferrari, Ineos, and Other Luxury Brands Feel the Pinch

Luxury automakers are not immune to the shakeup. Ferrari has increased prices by 10% on high-demand models such as the Purosangue SUV, 12Cilindri, and F80 hypercar. However, vehicles like the 296 GTB, Roma, and SF90 remain unaffected—for now.

Ineos, the British startup, faces a double tariff hit with the long-standing 25% “chicken tax” and the new import tax. As a result, prices for the Quartermaster and Grenadier have been raised by up to 10%, but pre-April 3 orders are exempt.

Automakers Are Bracing for the Long Haul

This latest trade policy shift has thrown the global auto industry into yet another period of uncertainty. With many automakers still evaluating long-term impacts, expect more price adjustments, plant relocations, and promotional campaigns in the coming weeks.

As brands race to mitigate tariff costs while maintaining consumer trust and market share, one thing is clear—the automotive supply chain is more interconnected than ever. These tariffs don’t just affect factories and corporations; they impact pricing, availability, and the car-buying experience for millions of Americans.

Final Thoughts: What This Means for U.S. Car Buyers

If you're in the market for a new vehicle, the next two months offer a limited window of deals as automakers hold prices or offer deep discounts to stay competitive. Expect higher prices, especially on imported models, later this year if tariffs remain in place.

Whether you're eyeing a luxury European car, a hardy American truck, or a tech-packed EV, the current situation might be your best chance to buy before the full effect of tariffs hits your wallet.

Summary Table: Automaker Responses to Trump’s 2025 Tariffs