A new analysis by the Center for Automotive Research has found that President Donald Trump’s 25% auto tariffs imposed in April will increase costs by about $108 billion for automakers in the U.S. in 2025. The study, released on Thursday, specifically highlights Detroit automakers Ford Motor, General Motors, and Stellantis as those most affected.
The tariff will result in increased costs of $42 billion for these three companies alone, with an average cost of nearly $5,000 per vehicle for imported parts and $8,600 per vehicle for cars imported from abroad. The overall industry average is estimated to be lower at $4,239 per vehicle.
The Detroit Three automakers will have to absorb the increased costs due to their reliance on imports from Mexico and Canada. However, those that comply with the terms of the U.S.-Mexico-Canada Agreement may deduct the value of U.S. content from their tariffs.
Matt Blunt, president of the American Automotive Policy Council, representing the Detroit Three automakers, stated that the study demonstrates the significant cost a 25% tariff will have on the automotive industry. The companies intend to maintain dialogue with the administration to achieve their goal of increased U.S. automotive production.
The analysis was conducted by Kalea Hall and edited by David Gregorio, both experienced reporters in the automotive industry, focusing on the Detroit Three automakers.
Source: https://www.reuters.com/business/autos-transportation/study-finds-trumps-25-auto-tariffs-could-cost-us-automakers-108-billion-2025-04-10