How Much Have US Tariffs Cost North American Automakers So Far?
The current U.S. government administration has enacted a series of tariffs aimed at reducing imports and increasing domestic manufacturing, with the car industry being significantly affected by the changes. Almost every big car brand is affected by tariffs to some degree, including both foreign and North American automakers.
Ford, GM, Stellantis, and Tesla all rely on a complex supply chain that involves raw materials and components supplied from across the globe, meaning even cars that are built in the U.S. don't escape the impact of the tariffs. Most major American automakers also build multiple current models outside of the U.S., with the majority of those models built in either Mexico or Canada.
A new report by Anderson Economic Group highlights the significant cost that these tariffs are already having on American automakers. It calculates that the total cost of auto tariffs on automobiles and parts from Mexico and Canada through October 2025 is at least $10.6 billion. Patrick L. Anderson, principal & CEO of Anderson Economic Group said in the report, "Even this figure underestimates the total tariff cost, as it includes only the two major categories of motor vehicle imports, and does not include any separate tariffs on steel and aluminum, nor imports from Europe or Asia."
Car prices will likely rise as a result of tariffs
The report notes that consumer price rises as a result of the tariffs are inevitable, and sales data from September 2025 indicates that these price rises may already be taking effect. According to KBB, the average new car buyer in September paid $50,080, the highest figure on record.
Erin Keating, an executive analyst at KBB's parent company Cox Automotive, said that the market was currently "being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market." Meanwhile, she said, "many price-conscious buyers are choosing to stay on the sidelines or cruising in the used-vehicle market."
The Trump administration continues to frequently alter its tariff program in response to new political developments, making it very difficult to estimate how much more financial pain America's automakers will be subject to in the coming months. However, automakers have remained optimistic despite the rising costs, with GM CEO Mary Barra assuring buyers in May that prices would not be rising as a result of the tariffs. Ford's CEO Jim Farley also recently publicly thanked Trump in October for tweaks to the tariff program, with new adjustments that the company has said will bring its 2025 tariff-related costs down from around $2 billion to just over $1 billion.