The recent implementation of tariffs by President Trump is poised to significantly impact the global automotive industry, creating a landscape of distinct winners and losers among car manufacturers.

Jaguar Land Rover (JLR) stands to be among the most adversely affected. With approximately 25% of its production destined for the U.S. market and no manufacturing facilities within the country, JLR faces substantial challenges. Even if the U.K. secures a favorable trade agreement reducing the 25% tariff on British-made vehicles, models like the Defender, produced in Slovakia, would still be subject to the full tariff. 

Similarly, Lotus is positioned to experience difficulties. The company’s Eletra and Emeya models are manufactured in Wuhan, China, making them susceptible to the newly imposed tariffs on Chinese imports. 

Mini’s situation is also precarious. While its China-made electric vehicles are sold elsewhere, the U.S.-bound models are produced in the U.K. and Germany, utilizing primarily British engines. These vehicles compete with American-made counterparts from Japanese, Korean, and domestic brands, potentially placing Mini at a competitive disadvantage. 

Audi, lacking manufacturing plants in the U.S., assembles most of its vehicles in the European Union, which currently does not have a favorable trade deal with the U.S. Notably, Audi’s best-selling Q5 model is produced in Mexico, a strategy that may now backfire due to the new tariff structures. 

General Motors (GM) could face significant setbacks. The company has extensively utilized the liberalized trade across Mexican and Canadian borders. With comparatively low U.S. production and content, GM may need to undertake substantial investments to reconfigure its domestic factories, a challenging endeavor amid declining profits and share prices influenced by the tariffs. 

Volkswagen also finds itself in a vulnerable position. Despite operating a sizable U.S. plant, approximately two-thirds of its American sales are of foreign-made vehicles, including those from its significant Mexican facility producing the Tiguan model.

Rolls-Royce’s U.S. clientele may be compelled to absorb increased costs due to the tariffs. The brand’s reliance on German engines and various components means that even with a potential U.K.-U.S. trade deal, the benefits might be limited.

Conversely, Tesla appears to be in a favorable position. All Tesla vehicles sold in the U.S. are domestically produced, insulating the company from the adverse effects of the tariffs. 

Rivian, another U.S.-based electric vehicle manufacturer, similarly stands to benefit by producing all its vehicles domestically, thus avoiding the tariff implications faced by foreign manufacturers.

Ford’s manufacturing footprint is more localized compared to GM’s. Its global operations, including those in Europe, are relatively insulated as they neither import significantly into the U.S. nor export extensively from it. 

Nissan presents a mixed scenario. From a U.K. perspective, its plant doesn’t export models like the Qashqai, Juke, or the newly renewed Leaf to the U.S. However, Nissan might face pricing pressures from competitors redirecting vehicles previously intended for the U.S. market into the U.K. Additionally, Nissan’s U.S. operations are not as deeply entrenched as some rivals, potentially affecting its market position.

McLaren remains cautiously optimistic. A company spokesperson indicated that the “handmade in Britain” allure is significant for U.S. buyers, and there are no current plans to establish a U.S. manufacturing facility. McLaren’s American customers are likely to absorb the tariff costs, especially given the lack of direct local competitors.

In summary, the newly imposed tariffs are reshaping the competitive dynamics of the automotive industry, favoring manufacturers with substantial U.S. production while challenging those reliant on imports.