The Center For Automotive Research (CAR) said President Donald Trump's automotive tariffs are complex and will hike costs associated with every light duty vehicles sold or produced in the United States.
The Ann Arbor Michigan based center estimated in a new analysis that since no vehicle is entirely produced within US borders, none will escape the 25% tariff imposed by the president. Even though the president's aim is to rebuild auto production in America, CAR said the impact of vehicle tariffs will be widespread. And may hurt.
CAR said the cost impact on all automakers in the US will top $107 billion. And for just the remaining three automakers left in Detroit, the former auto capital of the world, the tariff price tag is almost $42 billion.
The CAR report said, "As a result, all automakers operating in the U.S. would face increased costs due to tariffs on both imported parts used in domestic production and on imported vehicles. The Detroit Three automakers would bear greater overall cost increases from tariffs on imported parts — affecting domestic vehicle production — than from tariffs on their imported vehicles.
A White House fact sheet posted in March said Trump's policies are proven to create his desired impact of strengthening the manufacturing in general, and specifically the U.S. auto production and jobs.
A 2024 study on the effects of President Trump’s tariffs in his first term found that they “strengthened the U.S. economy” and “led to significant reshoring” in industries like manufacturing and steel production."
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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