North American automakers experienced huge tariff costs on imported vehicles and vehicle parts in 2025. The latest Anderson Economic Group (AEG) analysis shows that more than $9 billion in tariffs were imposed on assembled vehicles from Canada and Mexico, and another $3.5 billion was levied on auto parts, from January to December 2025. In total, these tariffs cost North American automakers and suppliers $12.5 billion in the past year.*
“$12 billion is a hefty bill, and that’s only for cars and parts from two countries,” said Anh Do, senior analyst at Anderson Economic Group. “The total tariff burden borne by the American auto industry and its customers last year is much higher when you include tariffs on steel and aluminum, as well as imports from Europe and Asia.”**
Prior to April 2025, almost all vehicles and a large share of auto parts from Canada and Mexico were exempt from tariffs. However, this changed for the worst in April following President Trump’s Proclamation 10908, with the share of tariff-exempt vehicles from both countries plunging from above 90% to just around 20%. This sharp drop in exemption share came with a huge tariff bill for the automakers, as documented by AEG’s October 2025 tariff update. The share of tariff-exempt vehicles remained low through June and gradually increased to around 40% by the end of the year.
“We warned back in November 2024 that tariffs would be a ‘two alarm fire’ for the auto industry,” said Patrick L. Anderson, principal and CEO of Anderson Economic Group. “In spring 2025, we estimated the cost per typical vehicle assembled in the U.S. would be in the thousands of dollars. Even with the relaxing of some duties that occurred in mid-2025, the tariff bill still exceeded $1600 per US-built car from April through December, just for duties on Canadian and Mexican cars and parts.”
*AutoInformed on
**Anderson Economic Group, LLC offers research and consulting in economics, valuation, market analysis, and public policy. “Our work in these fields is based on our core values of professionalism, integrity, and expertise.” For more click HERE.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Trumped Thumped – N.A. Automaker 2025 Tariff Costs $12.5B!
North American automakers experienced huge tariff costs on imported vehicles and vehicle parts in 2025. The latest Anderson Economic Group (AEG) analysis shows that more than $9 billion in tariffs were imposed on assembled vehicles from Canada and Mexico, and another $3.5 billion was levied on auto parts, from January to December 2025. In total, these tariffs cost North American automakers and suppliers $12.5 billion in the past year.*
“$12 billion is a hefty bill, and that’s only for cars and parts from two countries,” said Anh Do, senior analyst at Anderson Economic Group. “The total tariff burden borne by the American auto industry and its customers last year is much higher when you include tariffs on steel and aluminum, as well as imports from Europe and Asia.”**
Prior to April 2025, almost all vehicles and a large share of auto parts from Canada and Mexico were exempt from tariffs. However, this changed for the worst in April following President Trump’s Proclamation 10908, with the share of tariff-exempt vehicles from both countries plunging from above 90% to just around 20%. This sharp drop in exemption share came with a huge tariff bill for the automakers, as documented by AEG’s October 2025 tariff update. The share of tariff-exempt vehicles remained low through June and gradually increased to around 40% by the end of the year.
“We warned back in November 2024 that tariffs would be a ‘two alarm fire’ for the auto industry,” said Patrick L. Anderson, principal and CEO of Anderson Economic Group. “In spring 2025, we estimated the cost per typical vehicle assembled in the U.S. would be in the thousands of dollars. Even with the relaxing of some duties that occurred in mid-2025, the tariff bill still exceeded $1600 per US-built car from April through December, just for duties on Canadian and Mexican cars and parts.”
*AutoInformed on
**Anderson Economic Group, LLC offers research and consulting in economics, valuation, market analysis, and public policy. “Our work in these fields is based on our core values of professionalism, integrity, and expertise.” For more click HERE.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.