WSJ: Tariff war costs global automakers nearly $12 billion

Global automakers have suffered nearly $12 billion in losses due to US trade tariffs, marking the industry’s largest financial blow since the COVID-19 pandemic, according to calculations by The Wall Street Journal (WSJ).

The WSJ reported that 14 major automakers, including Toyota, Volkswagen, and Ford, collectively lost about $11.8 billion, with Japanese giant Toyota experiencing the biggest hit of over $3 billion in the second quarter of 2025. In contrast, American electric vehicle maker Tesla reported the smallest losses, around $300 million, Caliber.Az cites the report. 

Industry experts warn that these losses may continue, with the net profits of the world’s 10 largest automakers—excluding Chinese companies—expected to decline by approximately 25% by the end of the year.

To mitigate financial damage, automakers are considering raising vehicle prices and relocating production to the US, but these adjustments are expected to take years. 

Meanwhile, companies also face the challenge of retooling factories and adjusting supply chains, after recent heavy investments in electric vehicle manufacturing.

By Sabina Mammadli