BMW and Toyota Are Not Safe— It has been confirmed that Trump’s tariffs will increase the cost of imported cars by up to 25%. Learn more about how much prices will increase this year and the impact it will have on the American people. Trump explicitly brought up the subject of imported cars, since he has promised to slap a 25% tariff on all cars manufactured outside of the United States. He also clarified that the administration will apply a 25% levy on all cars manufactured abroad as of midnight.
Trump’s tariffs will raise BMW and Toyota imported vehicle prices by up to 25%
Trump is trying to support the American auto industry, but the tariffs would surely impact American consumers’ prices for cars built elsewhere. The national reciprocal tariffs that were announced on Wednesday are in addition to the 25% tariff. For instance, a 25% car-specific duty plus a 24% reciprocal tariff will be applied on Japanese automobiles. Customers will see a significant price hike as a result. Trump maintained throughout his speech that his plans had been generous.
Before the event, one of Trump’s most unexpected promises was to levy tariffs on Canada and China. In 2025, China ranked as the United States’ second-largest trading partner, while Canada came in third. Last year, the United States imported $438.9 billion worth of goods from China, while Canada supplied $412.7 billion. With a $505.9 billion import balance, Mexico was the only nation with a larger balance. In all, 42% of all US imports in 2024 came from Mexico, China, and Canada. Trump’s team distributed an information sheet in the Rose Garden that included the reciprocal tariff rates for several nations that trade with the US.
Although a tariff rate for Canada is not specified, China is given a 34% tariff. During his speech in the Rose Garden on Wednesday, Trump emphasized that his tariffs are intended to improve the lot of Americans and make sure that businesses are incentivized to build factories and jobs in the United States instead of just importing ready-made goods. Hardworking Americans were compelled to watch other countries become wealthy and strong for years, much of it at our expense. However, Trump asserted that it is now our time to thrive.
BMW projects a $1.6 trillion loss this year due to Trump’s tariffs
The German automaker BMW predicted that tariffs imposed by the Trump administration would result in an extra cost of €1 billion (about 1.58 trillion won) this year. Oliver Zipse, the CEO of BMW, stated on a conference call on the 14th (local time) that if the 25% duty rate on imports from Canada and Mexico is maintained until the end of the year, an extra €1 billion will be spent this year, according to Bloomberg and Reuters. For a month, U.S. President Donald Trump waived duties on products that comply with the United States-Mexico-Canada Agreement (USMCA); however, certain BMW models from Mexico are already liable to tariffs.
Furthermore, the operational profit margin of the automotive institutional sector is expected to drop by 1 percentage point to a forecast of 5% to 7% this year as a result of tariff charges, according to BMW’s earnings release. BMW reported that its pre-tax operating profit dropped 37.7% to €11.5 billion (about 18.2 trillion won), while its sales volume, which includes the Mini and Rolls-Royce brands, dipped 4% to 2.45 million units compared to 2023.
As the German automaker holds its breath over Trump’s tariffs, Audi, another important automaker, has joined BMW to request a tariff-free trade in North America. As part of its supply chain resilience management and strategic monitoring, Audi has increased the local proportion of value-added parts. The automaker also stated that it is in communication with its supplier partners to implement a local-for-local strategy as needed. However, Audi’s current supply chain does not meet the revised NAFTA deal under USMCA, including Q5 production at the San José Chiapa plant in Mexico. The Q5 and Q5 Sportback are exported to the US and other global markets. Audi may adjust its supply chain to comply with revisions to the USMCA in mid-2026.
