Carmakers worried Trump’s tariffs would shred their bottom lines. Here’s how they avoided the worst of it

Chevrolet Silverado 1500s and GMC Sierra 1500s on the assembly line at the General Motors assembly plant in Fort Wayne, Indiana. Emily Elconin/Bloomberg/Getty Images

When President Donald Trump introduced his tariff policy earlier this year, it looked like a disaster for automakers. But even with US tariffs on imported cars and parts, it has shaped up to be a pretty good time for car companies.

Most automakers, even US-based ones, import some cars and most parts. But car companies’ dire cost estimates have decreased as tariffs keep getting rolled back, bit by bit.

More importantly for automakers’ bottom lines, the financial penalties for not meeting fuel efficiency rules have all but vanished. Those regulatory savings could eventually offset the cost of tariffs.

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