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Study finds Trump's 25% auto tariffs could cost US automakers $108 billion
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Study finds Trump's 25% auto tariffs could cost US automakers $108 billion
Apr 10, 2025 2:16 PM

DETROIT, April 10 (Reuters) - A new analysis by the

Center for Automotive Research has found that President Donald

Trump's 25% auto tariffs imposed in early April will increase

costs by about $108 billion for automakers in the U.S. in 2025.

The study, released on Thursday by the Ann Arbor,

Michigan-based organization, found Detroit automakers Ford Motor ( F )

, General Motors ( GM ) and Stellantis ( STLA ), maker of

Jeeps and Ram trucks, specifically will see increased costs of

$42 billion. The study found the Detroit Three could see tariffs

of nearly $5,000 for the parts they import on average for each

car produced in the U.S., and about $8,600 on average for each

car they import.

Trump's 25% automotive import tariffs took effect April 3,

causing shock waves across the industry since supplies come from

all over the world. Vehicles made in Mexico and Canada face the

levy, but automakers compliant with the terms of the

U.S.-Mexico-Canada Agreement can deduct the value of U.S.

content.

The tariffs have pushed automakers to make production

changes, with GM increasing truck output at an Indiana plant and

Stellantis ( STLA ) temporarily shutting down production at a plant in

Mexico and one in Canada. These moves affected five U.S.

facilities that are connected to them.

The study estimates the Detroit Three automakers will see an

average cost of the tariff per vehicle for imported vehicle

parts of $4,911, higher than the overall industry's average of

$4,239 per vehicle.

For imported vehicles, the study found the average tariff

cost per vehicle to be $8,722 for the overall industry and

$8,641 for the Detroit Three.

Ford, GM and Stellantis ( STLA ) did not immediately respond to

request for comment on the study.

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