Trump’s tariffs to cost US automakers $108B; Ford, GM, Stellantis hit hard
President Trump’s recent imposition of a 25% tariff on foreign auto imports is projected to have significant financial implications for US carmakers. According to a study conducted by the Center for Automotive Research, the tariffs are expected to cost US carmakers nearly $108 billion, with Detroit’s Big Three – Ford Motor, General Motors, and Stellantis – being hit the hardest.
The tariffs, which took effect on April 3, are aimed at boosting manufacturing within the US by making imports more expensive. However, since many US automakers rely on imported parts for their vehicles, the tariffs are likely to impact them adversely.
Specifically, the Big Three automakers are estimated to face a combined cost of about $41.7 billion due to the tariffs, despite their significant presence in US manufacturing. The study highlights the complex nature of the automotive supply chain, with many automakers sourcing components from multiple countries.
Analysts have cautioned that the costs incurred by the tariffs may be passed on to consumers, leading to higher prices for vehicles. This could have ripple effects throughout the automotive industry, making all aspects of the supply chain more expensive.
Some automakers have already taken steps to mitigate the impact of the tariffs, such as temporary layoffs and production halts. However, there is concern that further measures, such as factory closures or layoffs, may be necessary to offset the increased costs.
