Mercedes and Porsche Squeezed by U.S. Tariffs and Slowdown in China
New York Times2 days
Ford Reports $800M Tariff Hit, Raises Annual Cost Estimate
Above: Ford CEO James Farley at the Reindustrialize Conference 2025 on July 16, 2025, in Detroit, Michigan. Image copyright: Tasos Katopodis/Getty Images
The Spin
Democratic narrative
Trump's erratic trade policies are crippling the auto industry in both America's heartland and allied Europe. His 50% tariffs on steel and aluminum choke U.S. manufacturers like Ford and GM, while his lowered tariffs on Japanese cars favor foreign competitors. German automakers like Mercedes and Porsche are also facing slashed profits from high U.S. tariffs, impacting American consumers. This is the opposite of "America First."
Republican narrative
While Trump is certainly trying to boost American car makers in good faith, his tariffs appear to be backfiring. The 25% levies on vehicle imports and parts have spiked costs, slashing GM’s profits by $1.1 billion and forcing Stellantis to idle plants. Even U.S.-based Tesla and Rivian suffer from pricier foreign components. These tariffs raise car prices by thousands of dollars, burdening consumers and betraying his MAGA promises.
Conservative narrative
Trump's tariffs are a bold stand against liberal and establishment Republican sellouts who've bled America dry with disastrous trade deals. His 25% levies on imports shield the auto industry from China's predatory tactics and the EU's unfair tariffs, revitalizing heartland jobs. Unlike globalist appeasers, Trump prioritizes American workers over outsourced-driven profits, forcing allies and adversaries alike to respect U.S. sovereignty.