Automakers are currently absorbing the costs imposed by tariffs, but the financial strain is becoming increasingly noticeable. Recent reports indicate that U.S. tariffs have resulted in substantial losses for American automotive companies, with estimates suggesting that luxury automakers alone may face a combined hit of $889 million. As a result, analysts warn that the average price of new cars could exceed $50,000. The ripple effects are evident in both U.S. and European markets, where automakers are navigating a landscape marked by rising costs, disrupted supply chains, and waning demand. Despite initial resilience reflected in quarterly balance sheets, the pressures from Trump’s trade deals are pushing companies to reassess their strategies and financial forecasts.