President Donald Trump’s proposed import tariffs on foreign goods are set to shake the global automotive industry, with luxury carmakers potentially feeling the impact most acutely. The 25% tariff on new car imports will have far-reaching consequences for premium automakers relying heavily on overseas production as part of Trump’s business strategy focused on reshoring manufacturing and protecting domestic production.
Many high-end automotive brands proudly showcase their national identity, such as Germany’s Porsche, Italy’s Ferrari, or the UK’s Aston Martin. However, the reality of global manufacturing is more complex. Some brands build popular models abroad, while others have invested in U.S.-based production facilities to reduce exposure to potential trade barriers. Understanding the impact of Trump’s proposed tariffs requires examining where these vehicles are actually built.
German Luxury Brands
German brands are among the most affected due to their significant U.S. sales and reliance on European manufacturing:
- BMW: Manufactures SUVs in South Carolina but imports many sedans, coupes, and performance M cars from Germany. Tariffs would particularly affect high-margin models like the 7 Series, 8 Series, and M5.
- Mercedes-Benz: Builds some SUVs in the U.S. but imports S-Class, AMG models, and electric EQ series. Tariffs could raise prices and impact demand in the luxury EV segment.
- Audi: Has no U.S. manufacturing plant, so all vehicles are imported. Expect price hikes across the lineup, especially for RS models and luxury EVs like the e-tron GT.
- Porsche: All models are imported, but its brand equity and growing lifestyle ecosystem may help it weather economic disruptions.
British Luxury Brands
- Bentley, Rolls-Royce, Aston Martin, McLaren, Lotus: All manufactured in the UK with 100% of U.S. deliveries imported. Tariffs could further raise already hefty prices, potentially dampening sales.
- Jaguar Land Rover: Builds everything overseas, either in the UK or Slovakia. Tariffs would likely be passed on to consumers, reducing competitiveness in the SUV market.
Italian Luxury Brands
- Ferrari, Lamborghini, Maserati: These iconic brands produce no vehicles in the U.S., so the full force of tariffs would apply. Ferrari has already announced price increases of up to 10 percent to reflect new import conditions.
Asian Luxury Brands
- Lexus: While some models are built in the U.S. or Canada, the majority are made in Japan. Tariffs could impact pricing.
- Acura: Owned by Honda, Acura produces almost its entire lineup in the U.S., potentially mitigating tariff impacts.
- Genesis: As Hyundai’s luxury arm, Genesis currently imports many models from Korea. Tariffs could disrupt pricing for this value-driven luxury brand.
Trump’s import tariffs could reshape how luxury vehicles are sold, priced, and produced. For enthusiasts, collectors, and high-net-worth buyers, the next chapter of luxury car ownership in America may look very different.
