MW GM, Ford and Stellantis face extra $5,000 cost for each car made in America, thanks to Trump's tariff on parts

By Victor Reklaitis

Big Three automakers also are dealing with an average tariff cost of nearly $9,000 for each finished vehicle that's imported, new study finds

As American businesses and shoppers try to figure out the effects of President Donald Trump's tariffs, one research center is offering estimates on what his new import taxes mean for automakers.

While Trump made a partial retreat this week by putting only a 10% tariff on most foreign countries' goods for 90 days - rather than sticking with higher global levies rolled out on April 2 - his climbdown didn't change his auto tariffs or other sector-based initiatives.

The Trump administration has been collecting a 25% tax on every car not assembled in the U.S. since last week, and a 25% tax on a range of imported auto parts is due to go into effect "no later than May 3," according to an executive order.

So what does that mean for Detroit's Big Three automakers?

General Motors Co. $(GM)$, Ford Motor Co. $(F)$ and Jeep parent Stellantis $(STLA)$ are facing an average tariff cost of $4,911 for each car assembled in the U.S. due to their reliance on imported parts, according to a study from the Center for Automotive Research. The study's authors noted that "no vehicles are built with 100% U.S. domestic content." The overall cost of the new 25% tariff on parts for the Big Three would be $22.5 billion.

Related: Trump warns automakers not to hike prices. What power do presidents have?

In addition, the three companies are dealing with an average tariff cost of $8,641 for each imported vehicle, the study found. The Chevy Blazer, the Chrysler Pacifica, the Ford Maverick, the Ford Mustang Mach-E, the Jeep Compass and the Lincoln Nautilus are among the Big Three vehicles that haven't been getting assembled in the U.S. The overall cost of the new 25% import tax on finished vehicles for GM, Ford and Stellantis would be $19.2 billion.

In total, the Big Three are facing a total increased cost of $41.7 billion due to Trump's new auto tariffs, according to the estimates from the Center for Automotive Research. The auto industry in the U.S. overall - meaning all automakers and their suppliers - is set for an increased cost of $107.7 billion, the center found. The researchers said their estimates are "likely understated because of cross-border trade activity," which is "common for parts but difficult to estimate on a case-by-case basis."

Related: This is why Trump's tariff plan has upended the car industry

The center said the increased cost "will likely be distributed across the broader automotive ecosystem - including suppliers, distribution channels, and ultimately the end user: the consumer or customer."

Read more: People could barely afford their cars even before Trump's auto tariffs. It's about to get worse.

And see: Trump warns automakers not to hike prices. What power do presidents have?

The Center for Automotive Research, a nonprofit based in Ann Arbor, Mich., said its study was conducted independently and reflects its views alone, but it also disclosed that the study was commissioned by the American Automotive Policy Council, a lobbying group for the Big Three.

The United Auto Workers is among the groups that has expressed support for Trump's auto tariffs.

"We applaud the Trump administration for stepping up to end the free-trade disaster that has devastated working-class communities for decades," said UAW President Shawn Fain in a statement last month. "These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen (XE:VOW) (XE:VOW3) and beyond, to bring back good union jobs to the U.S."

Now read: GM's cost for cars made in Mexico or Canada to rise by $4,300 per vehicle, UBS estimates

Opinion: Trump's tariffs on car and truck imports risk putting U.S. automakers into a spin

-Victor Reklaitis

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April 11, 2025 14:58 ET (18:58 GMT)

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