Global Automakers Witness Losses
(MENAFN) Fourteen international car manufacturers have incurred close to $12 billion in losses since the implementation of trade tariffs introduced by US President Donald Trump, and projections indicate even greater losses by the year's end, according to a report by the Wall Street Journal.
In April, Trump unveiled new tariffs targeting 185 nations and territories.
A blanket 10% tariff on all imported vehicles and parts was enforced starting April 5, followed by specific rates based on country of origin on April 9.
The WSJ’s analysis released Thursday reveals that Toyota has borne the heaviest blow—losing approximately $3 billion in the second quarter alone—and anticipates a cumulative tariff impact of $9.5 billion by the close of its fiscal year in March 2026.
Volkswagen has reportedly experienced losses totaling $1.5 billion, while both Ford and General Motors have each declared losses exceeding $1 billion in the second quarter.
Among leading automakers, Tesla has been the least impacted, with an estimated loss of $300 million.
The Wall Street Journal further states that the top ten global automakers, excluding Chinese producers, could face a 25% decline in net profits by the conclusion of this year.
Meanwhile, the European Union and Japan have been in talks with Washington to reduce tariffs.
Current US tariffs on EU-manufactured vehicles stand at 27.5%, with Brussels aiming to lower this to 15% in return for reducing its own 10% tariff on American cars.
In July, Japan agreed to a similar arrangement, decreasing US tariffs on its vehicles to 15% as part of a broader bilateral agreement.
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