Trump's tariffs are pummeling top automakers. The hit is $11.7 billion -- and climbing
The auto sector is taking President Trump's tariffs on the chin. Toyota (TM), the world's largest automaker, was the latest to reveal the impact it's seeing from tariffs in its earnings on Thursday morning, with slightly over $3 billion wiped from its fiscal Q1 (June 30) operating income.
With Toyota's results in, the cumulative tariff hit from the largest automakers following the end of the June quarter stands at around $11.7 billion, per automakers' financial disclosures. Toyota had the largest exposure, followed by rivals like Volkswagen (VWAGY), GM (GM), Ford (F), Honda (HMC), and others. China's top automakers were excluded from the list as they do not operate in the US.
Automakers, including Toyota and Honda, are not only seeing imports from their home market of Japan hit with tariffs (15%). They're also dealing with higher overall auto sector tariffs of 25% impacting operations from countries like Canada and Mexico. This also goes for the Big Three — Ford, GM, and Stellantis — which have significant operations with US-Mexico-Canada Agreement (USMCA) partners.
Even Tesla (TSLA), which makes all of its vehicles in the US, had a significant tariff impact from duties on auto parts like batteries for EVs.
https://finance.yahoo.com/news/trumps-tariffs-are-pummeling-top-automakers-the-hit-is-117-billion--and-climbing-113018599.html
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