A new study by the Center for Automotive Research estimates the potential costs of 25-percent import tariffs on assembled vehicles and automotive components. The study is a response to the 25-percent tariff on cars imported to the U.S. imposed by the Trump administration.
The study estimates a total cost increase of $107.7 billion for the entire U.S. auto industry. That’s broken out into $43 billion in added costs for parts and $64.7 billion in new costs for assembled vehicles.
Naturally, these costs are lower for the Big Three Detroit automakers, including GM, since they do more assembly and parts sourcing in the U.S. The grand total estimated added cost is $41.7 billion, made up of $22.5 billion for parts and $19.2 billion for assembled vehicles. The study shows that the U.S. auto industry imported 7.5 million cars to the U.S., 2.2 million of which were imported by GM, Ford, and Stellantis.
The formula used to reach these numbers is quite simple. The Center for Automotive Research simply added 25 percent to the cost of importing light vehicles and automotive components.
The study uses production and sales data from 2024, so it doesn’t factor in any potential shifting of automotive production to the U.S. Moves like GM increasing truck production at its Fort Wayne, Indiana assembly plant can help mitigate these tariff costs, as well as automakers using more U.S.-based suppliers for their components.
On April 9th, President Donald Trump announced a 90-day pause on the reciprocal tariffs announced on “Liberation Day,” which went into effect on April 3rd. However, the 25-percent tariff on all cars imported to the U.S., with temporary exemptions for USMCA-compliant vehicles, hasn’t been paused or rescinded. Until the extent and timeline of USMCA exemptions to car imports are finalized, and although Trump said he’s willing to help some of the auto companies without going into specific details, the U.S. automotive industry remains in a state of uncertainty.
Comments
“doesn’t include any production shift”
So the whole study is a Crock! Why do people wonder why the term “Fake News” exists?
@ Steve
Agree 100%
Fear-mongering is what got us into this CHAOS in the first place!
I’ve also come to realize in my line of work that “sick” and “weak minded” people can’t be helped. That have to WANT to help themselves first and then CHANGE!!! yet, they can’t.
Yeah, the economic chaos trump caused isn’t really happening. It’s all just fake news brought to you by journalists, the enemy of the people.
The term “fake news” exists because of a story about a D.C. pizza place that was said to be the center of a child-sex-trafficking ring run by high-level Democrats. The story was started by a right-wing nutjob, then it got picked up by Info Wars, which ran with it, leading to a whole bunch of morons believing it to be true. When asked about it, Hilary Clinton referred to it as “fake news,” which it obviously was. Well, obviously to anyone with even half a brain….
Now trumpers use it as a way to describe anything that makes them look bad. Reality no longer enters into the equation.
You are so lost and an example of what I was talking about in my previous post. Thank you sincerely for proving my point Seek help quickly!
One of is, indeed, lost. Thanks for proving that. Until you finally realize how completely you’ve been conned, there’s no help in sight for ya….
Probably the one who has their avatar being them looking like Darth sidious from Star wars??
So it’s a crock because they didn’t estimate for production on-shoring that may or may not happen? They calculated the effects from available data based on 2024 data, that sounds like a pretty accurate read free of speculation. If they had done a separate study to show the effect of on-shoring with a single estimate of production location changes instead of a range, that would be a crock.
Trump’s mind bend of the hour has auto tariffs being put on hold. Keep up!
Time to give BRAINLESS BARRA another MASSIVE pay increase
You say she is brainless ? . More like do you know where your brain is ? . Me thinks
lost in action. Bet you wouldn*t complain if you EARNED as much as she does.
Poor automakers! They didn’t give a crap about the families they hurt, via layoffs and plant closures, when they decided to buy parts manufactured overseas rather than in USA. Now they must pay the price.
Uh, it’s us, the American consumers, who must pay the price. Which, I suppose, makes sense, since we were the ones who bought the off-shored stuff because it was cheaper. We pretty much made our bed; now we have to lie in it.
You’re naive at best, if you don’t think this gets passed down. We’ve already seen it in the form of the destination charge price increase.
2025 Acura MDX base price $52,550 – made in East Liberty Ohio
2025 Lincoln Nautilus base price $54,130 – Made in China and lacks a third row seat
Remind me again how those savings are being passed down to consumers…
Uh, well you can pay the price. I don’t need another car or truck.
Dump has again changed the narrative, now “some” tariffs that affect the auto makers is being put on hold….maybe. Dementia Don the Con can’t make up his small mind, as usual. Gee no wonder the world is confused about his idiotic tariffs, he can’t even make up his mind. Hey Donnie boy, you should slap a 10% tariff on that island that only has penguins living on it. What a genius.
What did Joe do?
People take don too seriously. If you watch the Big Bang Theory t.v. show. You would see don is copying Sheldon Cooper. He says something totally AS_ inine . people listen then think he*s CRAZY. THEN HE SAYS ” BAZINGA” no one sees my jokes coming. don loves the foolishness.
Like shooting fish in a barrel. You can fool most of the people etc. etc. ” CRAZY LIKE FOX” in
a henhouse.
The ham-fisted tariff rollout wasn’t crazy like a fox. It was just plain crazy. As in, crazy like an insane person.
Or, more accurately, crazy like a senile old man.
Stop winning build AMERICAN vehicles in AMERICA with AMERICAN made parts problem solved maybe next time you need the AMERICAN people to bail out the company maybe you can get other countries to do it.
And expect to pay double the price because of all the high wages the UAW wants.
UAW or not, this whole thing isn’t going to bring back any real jobs for Americans except for those who make a living servicing the robots used by the new assembly lines….
At least that is more than we’ve been getting the last four decades of shipping US jobs overseas.
I think you mean shipping jobs out of the U.S., regardless of whether or not there’s a shared land mass. Anyway, in 1976, GM started making the Nova in Mexico. This was a move that was championed by cost-cutting corporate cheerleaders–and the GOP. But it was during Reagan’s time in office when we saw the real effort to move jobs out of the country begin. Clinton at least tried to mitigate the problem with NAFTA, the thinking behind it being that if wages in Mexico began to approach those of U.S. workers, there would be no need for U.S. companies to build factories there.
Bringing manufacturing back to the U.S. is an admirable goal. However, all the efforts to do so since the most recent presidential inauguration have been a walking, talking definition of ham-fisted. It could have been done very effectively, but that would have required a fair bit of planning, which would have required an attention span of more than a few moments, something your orange messiah lacks….
maybe you should run for president since you know it all
And those are real and very valuable jobs. Those are the jobs ¢h1n@ is desperately trying to build ASAP to avoid their population collapse.
Once again, WTF do you guys want? In the 0b@m@s admin, it was “shovel ready jobs” now no, can’t do that. Ok, what about blue collar manufacturing? No, can’t do that, “nobody wants that anymore.” OK, what about when we bring manufacturing back, we have robots and we now need dozens of robot operators, No, can’t do that.
Is it you guys just don’t want jobs and want everyone living off the federal G0verment? If that’s your preference, please say so and we can at least know where you stand.
A few point here:
1) Because China being able to choke off supplies of anything at a whim is a better option? Are you not aware they even produce our medications especially antibiotics and have at one point, threatened to cut this off from us? They have shown the world the real China and have no qualms of coercing anyone they see fit.
2) You do realize an automated factory does not work like, one guy walking in, pushes a button, and away the factory churns stuff out? You still need operators and people monitoring the automated processes. And there is quality control because robots, like other machines, can fail. And yes. Not to mention the guys that service and program those automated equipment, which are considered highly specialized and actually well paying. I work with guys that do building automation, and not any person can do what they do.
This isn’t about creating jobs. Its about not letting an adversary control our essentials. The job creation, is the icing on the cake.
Mr. Steve, perhaps you failed to read the article about MS Barra, and her $29.5 million pay last year. Then add all the other non-union big wigs and their muti million-dollar salaries, and then you blame the high costs entirely on the UAW? Seems like the UAW just wants part of that money pie, that the executives are feeding on.
I read it, and don’t like the fact that those execs got themselves a kabal around them to keep the money flowing. But while we’re on the subject, the union does the same thing, with Shawn Fains net worth growing by 2 million last year, and the UAW keeping the working union member in their place while feigning support while the factories are shut down. There’s no checks and balances on the system as the justice system, the lever we have constitutionally to address corruption, is infiltrated by the wealthy eliets and is too busy suing Trum p to look into the corrupt mob bosses.
There must be two Steves here.
This a completely non political question. Why does government get involved in business at all? Isn’t their job to collect taxes and use those funds for infrastructure such as roads, bridges, schools, hospitals, water treatment, mail delivery, etc.? It’s likely that politicians started “helping” their friends with (inside) information only available to them. It seems it’s ALWAYS about money, never truly about simply serving the people.
Not a fan of turbocharging, are you? Which we have today largely because the U.S. Army found that their planes weren’t getting enough oxygen at altitude. Or how about the computer on which your little fingers are so furiously typing? Not to mention the internet over which you ask your silly questions. All these things and more come to you courtesy of our federal gummint…
Wrong. Two british engineers developed turbocharging during WWII. Much tech came out of the war effort. Don’t conflate war time innovation with peace time government control of economic sectors.
Not a fan of turbocharging, are you? Which we have today largely because the U.S. Army found that their planes weren’t getting enough oxygen at altitude. Or how about the computer on which your little fingers are so furiously typing? Not to mention the internet over which you ask your silly questions. All these things and more come to you courtesy of our federal gummint…
Sorry about the double comment. My reply to Fred originally came out as a post unique to itself. I’d delete the extra one if I could; we used to be able to do such things here at GMA….
What is wrong with people? Why is it such taboo for our country to try to bring back manufacturing to safeguard our own lives?
The other alternative, allowing an aggressive and coercive authoritarian manufacture our essentials would not have been sustainable for our own long term security. Maybe you don’t agree with how Trump is going about it (and that is fine, I don’t fully agree with his method) but I think we can all agree that we need to preserve our national security and keep our families out of poverty and keep them safe.
I said it before and I will say it again. The day open season happens for Taiwan, and the hunter decides to go hunting, this won’t be like Russia where you can sanction them to the dump. China can fully coerce anyone that goes against their wishes and Taiwan will be a far more deadly affair.
Its really sad that our country has gotten this way and so many people are more worried about losing their TikTok or their Temu than losing our liberties and morals.