A recent study warns that President Donald Trump’s 25% auto tariffs could cost U.S. automakers an estimated $108 billion in 2025.
Released Thursday by the Center for Automotive Research, the report highlights a major financial hit, particularly for Detroit’s Big Three: Ford, General Motors, and Stellantis.
Together, these automakers are expected to absorb $42 billion in additional costs due to tariffs on imported vehicles and auto parts.
According to the study, tariffs will average nearly $5,000 per car for imported parts and over $8,600 for fully imported vehicles.
The sweeping tariffs, effective since April 3, have jolted the auto industry, with global supply chains suddenly tangled in red tape and added costs.
Even vehicles built in North America—like those from Mexico and Canada—are not exempt, unless they qualify under the U.S.-Mexico-Canada Agreement.
Automakers have begun recalibrating operations in response, with GM ramping up truck production in Indiana, while Stellantis pauses work at plants in Mexico and Canada.
These shifts ripple across the U.S., impacting five domestic facilities tied to the changes abroad.
The report notes the average tariff burden for the industry is $4,239 per vehicle for parts and $8,722 per vehicle for imports.
The Detroit Three, however, face slightly higher averages—$4,911 and $8,641 respectively—highlighting their vulnerability.
Matt Blunt, president of the American Automotive Policy Council, called the findings “a stark reminder” of the tariffs’ toll on U.S. production.
He added that Ford, GM, and Stellantis remain committed to dialogue with the administration to boost domestic manufacturing.
GM and Stellantis declined further comment, while Ford did not immediately respond.