Trump's Brutal Car Tariffs Could Drive Up Prices By Thousands—And Mazda's In The Firing Line

Japanese carmaker Mazda is bracing for a significant financial blow as former US President Donald Trump's proposed 25% tariff on imported vehicles threatens to upend the country's automotive industry. With seven of its eight US-sold models manufactured overseas, Mazda stands to be disproportionately affected, making its vehicles more expensive for American consumers and potentially disrupting the brand's sales momentum in the region.

Mazda And Others In The Crosshairs

According to Wards Automotive and Barclays research, Mazda holds one of the lowest shares of vehicles assembled in the US. As reported by Axios, only 19% of Mazda cars sold in the US are manufactured domestically, placing it in a vulnerable position alongside Volvo (13%) and Volkswagen (21%).

The brand's best-selling model, the CX-5 crossover SUV, sold 134,088 units in 2024 thanks to its refined interior and agile performance. However, its base price of £22,763 ($28,770) is expected to climb due to the new tariffs taking effect from 3 April.

'Mazda does appear to be most exposed given their lack of US assembly,' Cox Automotive analyst Erin Keating told the Daily Mail.

Affordability Remains A Major Concern

Mazda North America president and CEO Tom Donnelly told Yahoo Finance in January that affordability is one of the industry's key headwinds. Despite rising costs, Mazda has achieved strong sales by offering budget-conscious consumers vehicles that deliver both performance and value.

'We've had to make some adjustments in terms of [product] mix and our programmes and incentives; we've been able to maintain pricing overall, and again, this has led to the most successful year in our 54-year history here in the US market,' he said.

The CX-90 and CX-70 models, including plug-in hybrid options, have been standout performers, generating 15% to 20% of Mazda's revenue. Donnelly also highlighted the CX-50 hybrid as the brand's fastest-turning vehicle, often selling within three to four days of arriving on lots.

Planning For Impact

Mazda has been preparing for the tariffs for several months. Despite having a manufacturing plant in Alabama and another in Mexico, most of its inventory remains heavily reliant on Japanese production.

'What's clear is no business in any industry can absorb the magnitude of what's being talked about here,' Donnelly said, adding that any price adjustments could take months or even a year to implement.

Franchises like Safford Brown Mazda Fairfax are already warning customers about incoming changes. In a recent blog post, the dealership stated, 'The importer pays the tariff when the car, SUV, or truck enters the country... but the cost will be passed to consumers in the form of higher car prices.'

A Threat To Market Share

If implemented, Trump's tariff proposal could erode Mazda's already limited share of the US market, where it lacks the domestic manufacturing scale of competitors such as Ford or General Motors. The company may be forced to choose between relocating production, requesting tariff exemptions, or absorbing a decline in sales.

Industry experts warn that widespread tariffs would not only affect vehicle prices but also disrupt supply chains and limit innovation by restricting access to affordable foreign components. As Mazda continues to monitor developments, its leadership may need to rethink the company's long-term strategy in the US to weather rising geopolitical tensions.