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The Center for Automotive Research has just calculated the profit figures and business costs that the car company is affected by when new tariffs are applied.
Notably, their analysis shows that President Donald Trump’s import tariffs impact not only international auto brands but also domestic automakers, costing them billions of dollars.
According to a report released in early April, Detroit automakers, including Ford, General Motors, and Stellantis (the parent company of Jeep and RAM), will incur an additional cost of up to $42 billion.
For every car they produce, the Detroit Big Three will face an average tariff of $4,911 per vehicle for imported parts, higher than the industry average of $4,239 per car. For fully imported vehicles, the average tariff is estimated at $8,722 per car, with GM, Ford, and Stellantis facing an average of $8,641 per vehicle.
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The Ford F-150 at a US factory. Photo: Ford. |
“Tariffs have had a telling effect on the US auto industry. Ford, Stellantis, and GM are committed to continuing negotiations with the administration to achieve the goal of increasing domestic auto production,” said Matt Blunt, president of the American Automotive Policy Council, representing the Detroit Three.
The new tariffs imposed by Donald Trump took effect on April 3, shaking up the nation’s auto industry. In the US, the auto supply chain relies heavily on international sources, especially China.
Therefore, even though they have built factories in the US and produce cars domestically, many brands are still affected by the 25% import tariff on car parts.
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