Research shows that Trump's strict tariffs on foreign automobile imports cost nearly $108 billion on a nearly $100 billion car manufacturer, with Detroit's Big Three being the hardest hit.
The 25% tax on foreign automobile imports and parts, which came into effect on April 3, affects 17.7 million vehicles and addresses an estimated $107.7 billion in costs.
The Trump administration has argued that the tax is intended to plead the US for manufacturing, as import taxes do not affect Made-in-the-USA vehicles.
However, many models are built with parts supplied from other countries, so taxation is hit by US automakers.
About 500 automatic lines had at least 10% of the components imported from outside the US and Canada. NHTSA 2025 data set.
The majority of carmakers recorded much higher stocks, around 40%.
Owning brands like Jeep and RAM, Ford Motor, General Motors and Stellantis Big 3 can bear the brunt of its substantial US production.
A survey released this week shows that taxes are expected to cost around $41.7 billion.
“This detailed investigation by the Automotive Research Center shows the significant costs of a 25% tariff on the automotive industry,” Gov. Matt Blunt, chairman of the American Automotive Policy Council, told the post in a statement.
“American automakers Ford, GM and Stellantis intend to maintain their continued dialogue with the administration to achieve their common goal of increasing US automobile production,” he added.
Analysts warn that automakers are likely to pass at least some of the tariff costs to consumers.
According to the research company, these additional costs “are likely to be distributed across the broader automotive ecosystem,” meaning that all aspects of the automotive equipment chain will become more expensive.
The research firm warned that because of the particularly complex automobile production channels, its estimates likely are on the low side due to cross-border trade activities.
For example, US automakers importing parts from China and then sending them to Mexico for manufacture must pay multiple fees at border stops.
Some automakers have already taken steps to mitigate the impact of tariffs.
General Motors plans to increase production at its Indiana plant, according to a Reuters report.
However, other automakers could hit margins without giving customers higher prices, allowing other automakers to close their factories or pressure them to order layoffs.
Stellantis has announced that it has temporarily set 900 workers at five U.S. facilities and has suspended production at assembly plants in Mexico and Canada.
