Trump's auto tariffs expected to cost industry over $100 billion, with millions fewer cars sold

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Source: The Independent

Saturday 12 April 2025 23:33 BST


Despite the on-off nature of President Donald Trump’s tariffs on U.S. trading partners, among those that still stand is the 25 percent import tax on imported vehicles that went into effect on April 3. Wall Street and automotive industry analysts foresee massive global implications for the industry if these tariffs remain in place, with vehicle sales plummeting by millions as prices for both new and used cars surge, according to reporting by NBC News.

Research reports put the increase in costs for the automotive industry due to Trump’s tariffs in the region of $100 billion, with Boston Consulting Group putting the upper range at $160 billion for both U.S. and non-U.S. manufacturers. “What we’re seeing now is a structural shift, driven by policy, that’s likely to be long-lasting,” Felix Stellmaszek, BCG’s global lead of automotive and mobility, told CNBC.

“This may well be the most consequential year for the auto industry in history — not just because of immediate cost pressures, but because it’s forcing fundamental change in how and where the industry builds.”

In the U.S. alone, automakers could see costs increase by $107.7 billion, according to the Michigan-based think tank, the Center for Automotive Research. That figure includes $41.9 billion for the big three U.S. automakers — General Motors, Ford, and Stellantis, the parent company of Chrysler.

Read more: https://www.independent.co.uk/news/world/americas/us-politics/trump-tariffs-cars-price-increases-b2732283.html