A new report from the Center for Automotive Research warns that President Donald Trump’s recently imposed 25% tariff on automotive imports could cost U.S. automakers an estimated $108 billion in 2025 alone.
The analysis, released Thursday by the Ann Arbor-based think tank, highlights the significant financial burden the tariffs will place on automakers, particularly Detroit’s “Big Three” — Ford Motor Co. (F.N), General Motors (GM.N), and Stellantis (STLAM.MI), the parent company of Jeep and Ram. These three companies are projected to absorb $42 billion of the total cost.
According to the study, Detroit automakers could face an average of $4,911 in tariff-related costs for imported parts used in vehicles assembled domestically, and roughly $8,641 per imported vehicle. For the industry overall, the per-vehicle tariff cost is estimated at $4,239 for parts and $8,722 for imported vehicles.
Trump’s 25% tariff on imported vehicles and auto parts, which took effect on April 3, has sent shockwaves through the auto industry. The new levy applies to vehicles imported from countries including Mexico and Canada. However, manufacturers meeting content requirements under the U.S.-Mexico-Canada Agreement (USMCA) are permitted to deduct the value of U.S.-sourced components.
In response to the tariffs, automakers have already begun adjusting production strategies. General Motors has ramped up truck production at its Indiana plant, while Stellantis has temporarily paused operations at facilities in Mexico and Canada, affecting several related sites in the United States.
Matt Blunt, president of the American Automotive Policy Council — which represents Ford, GM, and Stellantis — emphasized the impact in a statement: “This study clearly demonstrates the significant cost a 25 percent tariff will have on the automotive industry.”
Blunt added that the automakers “intend to maintain our ongoing dialogue with the administration to achieve our shared goal of increased U.S. automotive production.”
While Ford did not immediately comment, both GM and Stellantis referred inquiries to the trade group’s statement.
