President Donald Trump’s proposed sweeping import tariffs on foreign goods are set to shake the global automotive industry — and luxury carmakers may feel the impact most acutely. With a new business strategy focused on reshoring manufacturing and protecting domestic production, Trump’s 25% tariff on new car imports will have far-reaching consequences for premium automakers that rely heavily on overseas production.
What Trump’s Import Tariffs Mean for Luxury and Exotic Car Brands
While many high-end automotive brands proudly showcase their national identity — such as Germany’s Porsche, Italy’s Ferrari, or the UK’s Aston Martin — the reality of global manufacturing is far more complex. Some brands build their most popular models abroad, while others have made strategic investments in U.S.-based production facilities to reduce exposure to potential trade barriers.
Understanding how Trump’s proposed U.S. import tariffs affect luxury car brands requires a closer look at where these vehicles are actually built. From Germany to Japan, and Italy to South Korea, the country of origin and assembly will significantly influence whether tariffs are applied — and how steep the final price tag could be for American buyers.
German Luxury Brands
These are among the most affected due to their large U.S. sales and reliance on European manufacturing:
BMW – Although BMW does manufacture in the U.S. (notably SUVs in South Carolina), many of its sedans, coupes, and performance M cars are imported from Germany. The tariff would especially affect high-margin models like the 7 Series, 8 Series, and M5.
Mercedes-Benz – Like BMW, Mercedes builds some SUVs in the U.S., but its S-Class, AMG models, and electric EQ series are imported. Tariffs could raise prices and hurt demand in the luxury EV segment.
Audi – It has no U.S. manufacturing plant, so all its vehicles are imported. Expect price hikes across the lineup, especially for RS models and luxury EVs like the e-tron GT.
Porsche – Like Audi, all of its models are imported. But its unique brand equity — and an ever-growing lifestyle ecosystem — means it can weather economic disruptions better than most.
British Luxury Brands
Bentley, Rolls-Royce, Aston Martin, McLaren, Lotus – All manufactured in the UK, with 100% of U.S. deliveries imported. Tariffs could raise already hefty prices on these ultra-luxury cars, potentially dampening sales.
Jaguar Land Rover – While Land Rover SUVs sell well in the U.S., the brand builds everything overseas, either in the UK or Slovakia. Tariffs would likely be passed on to consumers, reducing competitiveness in a white-hot SUV market.
Italian Luxury Brands
Ferrari, Lamborghini, Maserati – Again, these iconic brands do not produce any vehicles in the U.S., so the full force of tariffs would apply. Ultra-high net worth Ferrari and Lamborghini customers may absorb the increase, but it could still soften demand for less exclusive models. Ferrari has already stated that it will reflect the new import conditions on its pricing, with increases of up to 10 percent, in coordination with its dealer network.
Swedish Luxury Brands
Volvo – While Volvo builds some vehicles (like the S60 and EX90) in South Carolina, many models are still imported from Sweden and China. Tariffs on Chinese-made Volvos could double down on cost pressures. Polestar has a mix of models made in the U.S. as well as imported from China.
Asian Luxury Brands
Lexus – While Toyota-owned Lexus builds its TX full-size SUV and ES car are built in the U.S., and compact SUVs, are built in Canada, the majority are made in Japan.
Acura – While Acura is owned by Honda, like Toyota’s Lexus brand, it’s been used to sell cars in the U.S. and almost its entire lineup is produced in the U.S.
Genesis – As Hyundai’s luxury arm, Genesis currently imports many models to the U.S. from Korea, though the GV70 and GV70 EV SUVs are produced in the U.S. Tariffs could severely disrupt pricing for this value-driven luxury brand.
Wrap-Up
Trump’s import tariffs could reshape how — and where — 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.
