Trump’s auto tariffs are here: Which car makers will thrive, and who’s in trouble?

Tesla and Honda are both well-placed to withstand the impact of Trump’s tariffs, thanks to their high US production rates. Tesla’s lineup includes models like the Model 3 Performance (87.5% domestic content) and Model Y (85%). Honda, with 63% total domestic content, surpasses legacy automakers like Ford and GM, and the Honda Passport leads with 76.5% domestic content, according to 2024 American-made index from the Kogod School of Business.

Other brands that may stand out the impact include Jeep, Volkswagen, and General Motors. The Jeep Wrangler has 76% domestic content. Volkswagen’s ID.4 electric SUV and GM’s Chevrolet Colorado and GMC Canyon also hover around 75.5%.

Other than the big auto name the dealers who make most of their money on repairs. They are also expected to be other safer side of the impact as the higher vehicle prices will be absorbed by automakers, not dealers.

Now, let's examine the companies most vulnerable to the tariffs.

Tariff shock: Which automakers may suffer the most?

Leading European and Japanese automakers with high US exports will take the hardest hit from the tariffs. With cars making up 283 per cent of Japan’s exports to the US in 2024, its automakers face a major blow.

Stocks for major automakers took a hit after Trump’s announcement, with Nissan, Toyota, and Honda dropping 2.2%, 2.7%, and 3.0%, respectively. South Korean giants Hyundai and Kia felt the pressure too, each seeing a 4.0% dip in value.

Over a dozen global automakers that have Europeans routes, including GM, Mercedes-Benz, BMW, Hyundai, and Toyota, run nearly 40 plants in Mexico. The country exported nearly three million vehicles and supplied 40% of U.S. auto parts last year, with the industry employing two million Mexicans and generating $200 billion in exports.

Not only the European and Japanese are in the frontline of the impact.

Automakers producing cars in the U.S. for global markets are bracing for impact as retaliatory tariffs loom. Ford, GM, Toyota, BMW, Honda, Mercedes, and even Tesla could feel the heat as trade tensions escalate.

The rising tariff costs could also slash R&D budgets, leaving automakers struggling to keep up with China's fast-moving competition.

The big question: How will top auto giants dodge the tariff fallout and protect their profits?

On Monday, Trump put out a list of companies on social media, which he claimed were set to invest trillions of dollars in the United States and create thousands of job opportunities. It also mentioned that car manufacturers like Honda, Nissan and Hyundai were set to shift their manufacturing process to America.

Ford, General Motors, and Stellantis are pushing for exemptions on certain low-cost car parts from the upcoming tariffs, according to sources quoted by Bloomberg. Executives have reportedly met with officials from the White House, the Commerce Department, and the U.S. Trade Representative’s office to make their case, though the discussions remain private.

Automakers have been stockpiling vehicles in the U.S., while buyers rushed to dealerships ahead of looming tariffs. The impact of this surge will be revealed as first-quarter sales reports roll in.

Meanwhile, Detroit’s automakers are prepared to pay tariffs on finished cars and major components but warn that levies on parts could cost billions, trigger layoffs, and undermine Trump’s goal of boosting the industry, sources say.

With the tariff deadline looming, top automaker execs are swarming Washington, pushing for relief.