Tariffs

A 25% Tariff on Imported Vehicles and Parts Would Have Severe Consequences for U.S. Auto Production...

Sharp Decline in U.S. Auto Production*

Fewer Vehicles Produced

Up to 435,000 fewer vehicles produced in 2025 due to tariffs with another 240,000 lost in 2026, totaling 675,000 vehicles over two years.

Auto Suppliers

Auto suppliers face a financial crisis, forcing many to take on costly loans or halt deliveries, further disrupting production.

Supply Chains

Supply chain disruptions could shut down U.S. assembly lines, worsening the damage.

North American Production

North American production would drop by 900,000 vehicles in 2025 and 1.3 million in 2026, hurting U.S. manufacturers supply parts to Canada and Mexico.

Higher Costs for Consumers

Rise in New Vehicle Prices

New vehicle prices would rise by over $4,000, making cars less affordable.

Rise in Vehicle Payments

Monthly vehicle payments would increase by $70-$80.

Increased Auto Loan Interest

Adds $1,000 in extra interest over a typical auto loan.

Threat to U.S. Auto Jobs

Major Reduction in U.S. Sales

Fewer New Vehicles Sold

Over 1 million fewer new vehicles sold in 2025.

Including U.S. Made Vehicles

Not just imported cars - U.S.-made vehicles would also see lower sales, further reducing domestic production.

*Modeled results based on 25% tariffs on finished vehicles and parts from Canada and Mexico, and 10% rate worldwide | Sources: GlobalData; Peterson Institute for International Economics; Bureau of Labor Statistics

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March 31, 2025

A 25% Tariff on Imported Vehicles and Parts Would Have Severe Consequences for U.S. Auto Production...

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