According to media reports, a newly released analysis by the Center for Automotive Research on April 10 reveals that the 25% auto tariffs implemented by U.S. President Donald Trump in early April could increase costs for American automakers by approximately $108 billion in 2025.
The analysis states that Detroit's "Big Three" automakers-Ford Motor Company, General Motors, and Stellantis, which manufactures Jeep and Ram pickups-will face a combined cost increase of $42 billion.
The study estimates that these three automakers will incur an average tariff cost of $4,911 per vehicle due to imported parts, higher than the industry-wide average of $4,239 per vehicle.
For imported vehicles, the research found that the average tariff cost per vehicle for the entire industry would be $8,722, while the average for Detroit's Big Three is slightly lower at $8,641 per imported vehicle.
Matt Blunt, president of the American Automotive Policy Council, which represents the three Detroit-based automakers, said in a statement that the study "shows that the 25% tariff would impose significant costs on the auto industry. U.S. automakers Ford, GM, and Stellantis intend to continue engaging with the U.S. government to achieve our shared goal of increasing U.S. vehicle production."
General Motors and Stellantis expressed agreement with the trade group's remarks, while Ford did not immediately respond to requests for comment.
The Trump administration's 25% tariff on imported vehicles officially took effect on April 3. Due to the global nature of the automotive supply chain, the move has caused significant disruption within the industry. Under the new policy, vehicles manufactured in Mexico and Canada are also subject to tariffs. However, automakers that meet the requirements of the United States-Mexico-Canada Agreement (USMCA) will only pay tariffs on the value of non-U.S.-made components.
These tariffs have prompted automakers to adjust their production strategies and shift capacity back to the U.S. General Motors has increased pickup truck production at a plant in Indiana, while Stellantis has temporarily shut down one plant each in Mexico and Canada. As a result, five U.S. plants connected to these facilities through the supply chain have been affected.
