Tariffs, Chinese rivals deliver blows to Toyota and other foreign automakers
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Foreign automakers are stumbling as the Trump administration's trade war delivers a bruising blow and Chinese automakers bear down.
Why it matters: Much of the U.S. conversation over the impact of auto tariffs has centered on Detroit's Big Three — but the blast zone extends far beyond General Motors, Ford and Stellantis.
Zoom in: Several foreign automakers that depend on the U.S. for significant sales are sporting bruises:
- Nissan — which was already facing operational issues — said Thursday its quarterly loss doubled from a year ago.
- Mercedes-Benz posted a 9.2% drop in 2025 revenue, while net profit fell nearly in half.
- Honda disclosed a 42% plunge in profit and a 2% decline in revenue.
- Toyota last week replaced its CEO after projecting a 25% decline in net income for the year ended March 31.
- Volvo Cars reported an 11% revenue decline in 2025 and swung to a loss from a profit a year earlier.
The big picture: Trump's protectionist trade framework has bludgeoned foreign automakers — even those with U.S. production footprints.
- For example, Toyota and Honda have significant American manufacturing operations but continue to rely heavily on an international supply chain, including imports from Japan.
- Toyota, BMW, Mercedes, Hyundai-Kia, Volkswagen, Mazda and Volvo all made less than half of their U.S.-sold vehicles in America as of early 2025, according to data from Wards Automotive and Barclays.
Meanwhile, Chinese automakers like BYD are surging in markets outside the U.S., presenting a serious threat to the Asian and European automakers.
- BYD last year sold more vehicles than Ford for the first time — and sold more pure electric vehicles than Tesla, another first.
- Chinese automakers doubled their European vehicle market share in 2025, Reuters reported.
What they're saying: Honda needs "to drastically change its EV strategy in the U.S., where the market is clearly slowing, and to scrap its previous plans in China," WSJ reported Tuesday, paraphrasing executive VP Noriya Kaihara.
The bottom line: No automaker is immune to global trade and technology turmoil.
