Study: Automakers' Costs Could Still Increase Drastically After Tariff Relief

Earlier this week, President Trump signed a new executive order to help relieve some of the tariff-related pressure on U.S. automakers, but they could still see a significant increase in costs after the new measures. Anderson Economic Group said auto companies could still see between $2,000 and $12,000 in extra costs per vehicle due to the tariffs.

Vehicles like the Honda Civic and Toyota Camry will likely see increases on the lower end of that spectrum, but imported luxury vehicles like those from Mercedes-Benz and Land Rover could come with a much higher markup. Anderson also estimated that models from Stellantis, including Jeeps, Rams, and Chryslers, could climb between $4,000 and $8,000 due to tariffs.

Some automakers have pledged to absorb those costs, at least initially, with many holding prices flat or offering incentive programs. That’s a great thing for buyers initially, but car companies won’t be able to eat the extra costs forever. General Motors recently announced that it expects to lose up to $5 billion from the tariff actions, which could increase as time goes on.

Trump’s recent order gave automakers two years to increase their domestic component usage. It gives them the ability to offset some of the costs related to importing parts, but the tariffs on imported vehicles remain, with a 25 percent duty on the millions of vehicles imported to the U.S. each year.

[Images: General Motors, Ford, Stellantis]

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