A new study from the Center for Automotive Research estimates that President Donald Trump’s 25% auto tariffs, enacted April 3, will increase costs for U.S. automakers by approximately $108 billion in 2025, placing substantial financial pressure on the industry.
Detroit’s Big Three—Ford, General Motors, and Stellantis—will shoulder about $42 billion of that total. According to the report, these manufacturers will face average added costs of $4,911 per vehicle for imported parts, significantly higher than the industry average of $4,239. For fully imported vehicles, the average cost rises to $8,722, with the Detroit Three facing about $8,641 per vehicle.
The Michigan-based research center released its findings Thursday, highlighting how the tariffs are forcing major production shifts. General Motors has ramped up truck output at its Indiana plant, while Stellantis temporarily halted production at one factory in Mexico and another in Canada—moves that have disrupted operations at five U.S.-linked facilities.
The tariffs, which apply to imports from countries including Mexico and Canada, allow deductions for U.S.-sourced content if manufacturers meet U.S.-Mexico-Canada Agreement (USMCA) standards. Despite these provisions, the broader impact is already being felt across supply chains that rely heavily on international components.
Matt Blunt, president of the American Automotive Policy Council, representing Ford, GM, and Stellantis, emphasized that the research highlights the substantial impact a 25% tariff would have on the automotive industry. He also mentioned that the companies plan to continue their discussions with the administration to collectively promote automotive production growth in the United States.
