President Trump’s rigid prices on foreign automobile imports will cost car manufacturers of nearly $ 108 billion – with a study by Detroit Big Three.
The 25% tax on imports and parts of foreign auto, which entered into force on April 3, should have an impact on 17.7 million vehicles, classifying about $ 107.7 billion in costs, reported the Center for Automotive Research, based in Ann Arbor, Michigan,.
The Trump administration has argued that taxes aim to court manufacturing in the United States, as import taxes will not affect vehicles manufactured in the USA.
However, the direct debits will hit us the car manufacturers, because many of their models are built with parts from other countries.
About 500 car lines had at least 10% of their components imported from outside the United States and Canada, according to the NHTSA 2025 data set.
The majority of car manufacturers have recorded much higher shares, around 40%.
The Big Three – Ford Motor, General Motors and Stellantis, which has brands like Jeep and Ram – will carry the large part of the brunt, despite their substantial American manufacturer.
Taxes should cost them about $ 41.7 billion, according to the study, which was published this week.
“This in -depth study of the Center for Automotive Research demonstrates the significant cost that a 25% rate will have on the automotive industry,” Governor Matt Blunt, president of the American Automotive Policy Council told a statement.
“American car manufacturers Ford, GM and Stellantis intend to maintain our continuous dialogue with the administration to achieve our common goal of increasing American automobile production,” he added.
Analysts have warned that car manufacturers will likely pass at least some of the tariff costs for the consumer.
These additional costs “will probably be distributed through the wider automotive ecosystem”, which means that all aspects of the automotive supply chains will become more expensive, according to the research firm.
The research firm warned that its estimate was probably on the low side due to the cross -border commercial activity, as car production channels are particularly complex.
For example, an American car manufacturer who imports parts of China, then sends them to Mexico for manufacturing should pay several costs at each border stop.
Some car manufacturers have already taken measures to mitigate the impact of prices.
General Motors plans to expand production in its Indiana factory, according to a Reuters report.
But other car manufacturers could feel pressures to close factories or order dismissals, as additional costs could land their margins without transmitting higher price labels to customers.
Stellantis has announced that it temporarily releases 900 workers in five American facilities and taking a production break in assembly factories in Mexico and Canada.
