A bombshell new study reveals that former President Donald Trump’s proposed 25% tariff on all imported vehicles could backfire spectacularly, costing U.S. automakers up to $108 billion in lost sales and retaliatory measures. Conducted by the Center for Automotive Research (CAR), the analysis shows these tariffs would:

• Increase average vehicle prices by $6,400 for American consumers
• Trigger 156,000 U.S. job losses across dealerships and manufacturing
• Invite retaliatory tariffs targeting $50 billion in U.S. auto exports

The policy, floated as part of Trump’s 2025 campaign platform, aims to “protect American factories” but would actually hurt Detroit’s Big Three (GM, Ford, Stellantis) the most. These manufacturers rely on Mexican and Canadian plants for 42% of their U.S.-sold vehicles—all of which would face the new border tax.

“These tariffs would be an own-goal for the U.S. auto industry,” said CAR’s Kristin Dziczek. “The pain would ripple from assembly lines to showrooms to consumers’ wallets.”

Key Takeaways:

• Foreign automakers like Toyota and BMW would gain market share by absorbing smaller cost increases
• EV adoption could slow as tariff-induced price hikes hit affordable models hardest
• Supply chain chaos would follow as manufacturers scramble to rework production networks