Research conducted by the Center for Automotive Research (CAR) in Ann Arbor, Michigan reveals U.S. automakers will need to spend an extra USD 108 billion by 2025 due to President Donald Trump's imposed 25% auto tariffs.

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Research findings document how rising tariffs which began on April 3 inflicted substantial financial strain upon companies operating in the U.S. automotive industry. According to an analysis the Detroit Three auto manufacturers — Ford Motor, General Motors, and Stellantis — will experience USD 42 billion of the entire financial impact. According to research the three major automakers should expect to pay USD 4,911 in additional tariffs for each vehicle they assemble in the U.S. The cost for fully imported vehicles exceeds USD 8,641 for each vehicle.

The trade taxes extend to every imported automobile and component regardless of their origin from either Mexico or Canada. American companies benefiting from the U.S.-Mexico-Canada Agreement (USMCA) can subtract the amount of U.S.-made content to receive some relief from compliance costs.

Shared industry data indicates that automotive part tariffs reach USD 4289 per vehicle and complete import tariffs exceed USD 8722 per vehicle.

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The costly tariffs have started to force companies into production modifications. The Indiana plant of GM now produces more trucks while Stellantis reduced operations at Mexican and Canadian facilities temporarily. The production disruptions caused by this incident affect five domestic facilities that are connected to those plants through their workforce.

Matt Blunt from the American Automotive Policy Council stress that these tariffs threaten US automobile industry market competition. According to Blunt the researched findings show how much economic burden this 25 percent duty will impose on automotive operations. Auto manufacturers in America plan to preserve their conversation with government officials to accomplish increased domestic vehicle manufacturing goals.

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GM and Stellantis deferred comment to the policy council, while Ford did not immediately respond.

Industry analysts say the added costs could lead to higher vehicle prices for consumers and may reduce overall car sales in an already challenging market environment.