President Donald Trump’s 25% auto tariffs, implemented in early April, are projected to cost U.S. automakers approximately $108 billion by 2025, according to a new analysis.
The Center for Automotive Research study, released Thursday, highlights a $42 billion burden specifically for Detroit’s Ford, General Motors, and Stellantis.
The study indicated that the Detroit Three could face nearly $5,000 in tariffs per U.S.-produced car due to imported parts, and roughly $8,600 per imported vehicle.
The tariffs, effective April 3, have disrupted supply chains, impacting vehicles from Mexico and Canada, though USMCA-compliant content can be deducted.
Automakers have responded with production adjustments, including GM’s increased truck output in Indiana and Stellantis’ temporary plant shutdowns in Mexico and Canada, affecting five related U.S. facilities.
The study estimates an average tariff cost of $4,911 per vehicle for imported parts for the Detroit Three, exceeding the industry average of $4,239.
The average tariff cost for imported vehicles is $8,641 for the Detroit Three, compared to $8,722 industry-wide.
Matt Blunt, president of the American Automotive Policy Council, representing the Detroit Three, stated the study “demonstrates the significant cost a 25 percent tariff will have on the automotive industry.”
He added that Ford, GM, and Stellantis intend to continue dialogue with the administration to boost U.S. automotive production.
GM and Stellantis deferred to the trade group’s statement, and Ford was unavailable for immediate comment.
