Washington, United States (Enmaeya News) — The tariff war started by President Donald Trump has cost global car manufacturers nearly $12 billion, the biggest loss they have faced since the COVID-19 pandemic. But experts warn this might just be the beginning.

Besides the ongoing cost of tariffs, car companies in the U.S., Japan, South Korea, and Europe will spend years restructuring their supply chains to adapt to the new trade rules. This comes after they already invested heavily in retooling factories for electric vehicles.

Automakers have responded to tariffs by raising prices and moving production to the U.S. But doing both quickly is difficult and could put pressure on these companies for years to come.

Some experts say tariffs will only slightly change the industry, pointing out that carmakers invest in the U.S. because of its strong consumer market, not because of government policies.

Still, the U.S. trade policies may speed up a shift toward making cars closer to where they are sold. Major car markets in North America, Europe, and China are becoming more divided due to different rules, technologies, and customer preferences. This encourages carmakers to design and build vehicles locally.

Volvo Cars CEO Håkan Samuelsson said, “I think we are leaving the era of globalization and global cars, where everything was equal, and becoming more regional.”