Islamabad, Apr 11, 2025: A fresh report from the Center for Automotive Research highlights the heavy financial blow American car manufacturers could face due to the 25% auto tariffs introduced by former President Donald Trump in early April.
The report projects that these levies will burden U.S. automakers with an estimated $108 billion in added expenses by the year 2025.
Released by the Ann Arbor-based think tank, the study pinpoints Detroit’s big three—Ford Motor Company, General Motors, and Stellantis—as bearing the brunt of these added costs.
Combined, these companies are expected to absorb approximately $42 billion of the total impact.
The research breaks down the financial strain per vehicle.
U.S. manufacturers expect to pay nearly $5,000 in average tariff-related costs per car for components sourced from abroad.
Meanwhile, fully imported vehicles could cost an additional average of around $8,600.
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The tariff policy, which officially came into effect on April 3, has created major disruptions across the auto industry.
Disruptions have hit supply chains hard, especially those for vehicles and parts originating from Mexico and Canada.
However, automakers that meet the criteria under the U.S.-Mexico-Canada Agreement (USMCA) can offset some of the tariff cost by deducting the value of U.S.-made components.
In response, several manufacturers have adjusted their production strategies.
General Motors has increased its truck production at a facility in Indiana, while Stellantis has temporarily paused operations at two plants—one located in Mexico and the other in Canada.
These decisions have had ripple effects on five U.S. facilities that depend on their output.
According to the report, Detroit’s automakers face a per-vehicle tariff cost of roughly $4,911 for imported parts—well above the overall industry average of $4,239.
For fully imported cars, the industry average sits at $8,722, while Ford, GM, and Stellantis average slightly lower at $8,641.
Matt Blunt, president of the American Automotive Policy Council, emphasized the serious implications of the tariffs.
He noted that the findings highlight the steep financial burden these policies place on domestic automakers.
Despite this, the Detroit Three remain committed to ongoing discussions with the U.S. government to bolster American vehicle production.
