Study predicts Trump's 25% auto tariffs could cost US automakers $108 billion

From Yahoo Finance: 2025-04-10 17:01:00

A new analysis by the Center for Automotive Research predicts that President Trump’s 25% auto tariffs will increase costs for U.S. automakers by $108 billion in 2025. Detroit automakers Ford, GM, and Stellantis could face $42 billion in increased costs. The tariffs have led to production changes and shutdowns in response.

The tariffs, which took effect in April, have caused disruptions in the automotive industry, affecting supplies from around the world. GM has ramped up truck production while Stellantis temporarily halted production at plants in Mexico and Canada, impacting five U.S. facilities. The Detroit Three could see an average cost of $4,911 per vehicle for imported parts.

For imported vehicles, the average tariff cost per vehicle is $8,722 for the industry and $8,641 for the Detroit Three. The American Automotive Policy Council, representing the Detroit Three, emphasized the significant impact of the tariffs on the industry. Automakers like Ford, GM, and Stellantis are working to increase U.S. automotive production.



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