European Automakers Spent $6 Billion On Tariffs Last Year

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Happy Monday! It's March 23, 2026, and this is The Morning Shift — your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, we're looking astatine nan tariff costs  borne by European automakers, arsenic good arsenic nan desire for Chinese EVs among U.S. car buyers. We'll besides look astatine GM's plans successful China, and really overmuch everyone loves Ohio anti-Tesla protestors. 

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President Donald Trump is large connected tariffs arsenic a measurement to unit manufacturing — seemingly nan only manufacture he considers to beryllium existent activity — backmost to nan United States. Never mind that we aren't really value competitory connected that, and we're much of a services supplier arsenic a federation than a equipment provider, Trump is going to make america value competitory by making it moreover much costly to build a car extracurricular nan States. How overmuch much expensive? Billions of dollars past year. From Automotive News: 

European automakers mislaid billions of euros to U.S. import duties past year, pinch immoderate manufacturers informing they whitethorn nary longer profit from definite models exported to nan U.S. arsenic they property President Trump for relief.

Few European automakers person been consenting to show investors nan afloat costs to their businesses from nan U.S. import taxes, making it difficult to gauge nan full impact.

The visible costs to European automakers was astir apt much than $6 cardinal successful 2025, according to financial documents, institution statements, and expert estimates. That fig apt understates nan existent load because galore companies person not afloat quantified nan hit.

Volkswagen Group provided nan clearest denotation of nan standard of nan impact, saying tariffs imposed complete nan last 9 months of 2025 trim net by €2.9 cardinal ($3.3 billion). VW exports vehicles to nan U.S. that it builds successful Europe and astatine its plants successful Mexico. The wide fig includes €1.2 cardinal astatine Audi, €700 cardinal astatine Porsche, and €900 cardinal astatine VW's namesake brand.

Of course, nan costs of tariffs are borne by nan importers — nan U.S. wings of these companies — alternatively than nan exporters complete successful Europe. The Germans whitethorn beryllium reimbursing their U.S. subsidiaries for now, but that whitethorn not past forever. 

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U.S. car buyers don't person a ton of money to propulsion around, and they don't want to salary much than they person to for gas. This would beryllium a cleanable opportunity for sellers of inexpensive EVs, if not for their 1 fault: Those inexpensive EVs are almost universally Chinese. From Reuters: 

DETROIT, March 23 (Reuters) – Sooren Moosavy wants to bargain an affordable electrical car successful nan U.S., motivated by biology concerns and a penchant for nan EV's smoother ride. But nan 28-year-old Baltimore resident's hunt ​has brought him to a trio of vehicles that are fundamentally unavailable – because they're from Chinese automakers.

Moosavy isn't alone. As nan mean value of a caller car successful nan U.S. approaches $50,000, much of nan car-buying nationalist is unfastened to buying cheaper Chinese cars, contempt guidance from nan manufacture and some awesome ​U.S. governmental parties. While Chinese autos deed nan highways of Europe, Latin America and moreover Canada, nan U.S. authorities has efficaciously banned nan cars pinch tariffs ​exceeding 100%, retired of concerns complete information information and protecting American jobs.

In places for illustration Europe, a number of Chinese EVs waste astatine ⁠prices nether $30,000. Some of those cars see amenities for illustration precocious driving assistance software, a built-in mini fridge, and nan action to singing karaoke pinch your chap passengers.

"The exertion ​they connection for those little value tags was astounding," said Clint Simone, elder features editor for car-shopping website Edmunds, who drove respective Chinese vehicles while astatine nan CES waste and acquisition show ​earlier this year.

No 1 wants to salary much than they person to for transportation, beryllium it successful a car costs aliases successful fuel. Chinese customers and U.S. car buyers person nan aforesaid concerns — of people we'd each want nan aforesaid cars. 

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Over successful China, GM useful pinch a institution called SAIC successful a associated task to make cars for nan Chinese market. Contrary to GM's U.S. plans, though, SAIC-GM needs to electrify Buick and Cadillac accelerated — aliases consequence income collapsing moreover further. From Automotive News: 

General Motors' troubled China associated task unveiled a three-year electrification push to reverse collapsing sales, betting connected accelerated deployment of Buick and Cadillac EVs arsenic SAIC-GM heads toward its June 2027 statement expiration.

The comeback playbook centers connected Buick and Cadillac leveraging nan preamble of locally developed software-defined cockpit, information and suspension systems. It besides includes a push into exports.

SAIC-GM President Lu Xiao shared nan strategy to dealers astatine a March 5 gathering successful Shenzhen, amid increasing questions astir nan venture's early successful nan world's biggest market.

The business GM founded successful 1997 pinch SAIC Motor Corp. to build Buick, Cadillac and Chevrolet rider vehicles is simply a cornerstone of its business successful China, a marketplace wherever it was erstwhile a predominate player.

Remember erstwhile nan early of automotive luxury was going to beryllium all-electric? Seems things are still headed that guidance successful China, astatine least. More grounds for nan U.S. Century of Humiliation. 

Remember those Tesla protests that utilized to hap each nan time? Turns out, they ne'er stopped successful nan metropolis of Lyndhurst, Ohio. They've still been happening each week, and residents are starting to get tired of each nan cars honking successful support. From Automotive News: 

Weekly protests extracurricular a Tesla shop successful Ohio for much than a twelvemonth person raised questions astir whether drivers person nan correct to honk whenever they want to.

The metropolis of Lyndhurst installed signs declaring nan area astir nan electrical conveyance showroom a "quiet zone," and constabulary person started pulling complete drivers who honk successful support of nan protesters arsenic they walk by, according to TV position WKYC successful Cleveland.

"We don't mind nan activity, but nan neighbors are getting a small rattled and would admit a spot little noise," Lyndhurst Mayor Patrick Ward said successful a connection to nan station.

This, of course, intends nan protests are to immoderate grade working, but each play for months connected extremity seems a small excessive. 

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