Tariffs By the Numbers
April 28, 2025
Impact on Automakers in the U.S.
The impact of a 25% tariff on imported parts and light vehicles:
- $107.7B cost impact on all automakers in the U.S.
- $41.7B cost impact on Detroit 3 automakers in the U.S.
Source: Center for Automotive Research
Cost to Consumers
- Tariffs expected to cost additional $2,500 to $5,000 for the lowest-tariffed American cars, and up to $20,000 for some imported models.
- US. consumer impact is estimated at $30 billion for first full year.
- New car prices are likely to increase, and the availability of models and equipment combinations decrease if the announced tariffs go into effect.
- With higher new car prices, used cars increase in value from what otherwise would be seen in the absence of tariffs.
Source: Anderson Economic Group
Canada-US Relationship
- $3.6 Billion in daily Canada-U.S. trade that supports jobs on both sides of the border
- $1,300 economic impact per American of 25% tariffs
- $68M in two-way trade between Canada and Michigan in 2024
- $22B in vehicles and other transportation exports from Michigan to Canada
- $12.7B in vehicles and other transportation imports from Canada to Michigan
Cross-Border Partnership
- $1.3T in annual two-way trade between Canada and the U.S.
- $1.7T in cross-border investment
- 1.4M American jobs are supported by exports to Canada
- 866,000 American jobs are supported by Canadian investment
- Auto Parts Cross North American Borders Up to 8 Times Before Final Assembly
Source: Canadian Chamber of Commerce, Canada-U.S. Trade Tracker
Economic Impact of the Trade War
- Estimates of more than $2.3 trillion, or 71 percent, of US imports face new tariffs.
- The tariffs will reduce after-tax income by an average of 1.2 percent and amount to an average tax increase of $1,243 per US household in 2025.
- As of April 4, China, Canada, and the European Union have announced or imposed retaliatory tariffs altogether affecting $330 billion of US exports. Imposed and threatened retaliation as of April 10 will reduce US GDP by another 0.2 percent and 10-year revenue by $132 billion on a dynamic basis.
Source: The Tax Foundation