The Center for Automotive Research (CAR) released today a new analysis* of the impact of potential tariffs on imported auto parts and light vehicles. It tackles what impact will a uniform 25% tariff on all trading partners have on the automotive industry overall?
“The analysis emphasizes the complexity of the modern automotive supply chain, noting that ‘the modern automotive supply chain is both global and complex, convoluting the seemingly simple question of the cost of 25% tariffs on the industry,’ and that ‘automakers and their suppliers are often multinational companies with facilities spread out across the world,’ making it difficult to discern how much of a vehicle is domestically produced,” said Dr. K. Venkatesh Prasad, Senior Vice President of Research and Chief Innovation Officer at CAR.**
Key Findings
- Increased estimated cost of $107.9 billion to all U.S. Automakers.
- Increased estimated cost of $41.9 billion to the Detroit 3 Automakers.
- Impact on Detroit 3 production volume of ~6.8 million vehicles.
*The new CAR study uses both top-down and bottom-up approaches to estimate tariff impacts.
- The top-down approach used 2024 U.S. trade data, applying key assumptions to estimate light vehicle and OEM shares of auto parts imports.
- The bottom-up approach used MY 2025 American Automobile Labeling Act (AALA) Part 583 data, including “domestic” content and countries of origin, to estimate tariff impacts on U.S.-produced vehicles.
- The fundamental analysis, equations, and methodologies are time-tested and remain consistent.
- In contrast, the specific tariff values are dynamic, evolving with policy, and thus their accuracy is contingent upon the stated assumptions.
**T he Center for Automotive Research (CAR) says it “produces industry-driven research and analyses; develops forecasts; fosters dialogue and convenes forums; and publicly disseminates our research through events, our website, and the media.
“As an independent, non-profit, research organization with a multi-disciplinary approach, CAR engages with leaders in the global automotive industry to support technology advancements and improve the competitiveness of the U.S. automotive industry. We succeed through close collaboration and strong relationships with automakers, suppliers, industry associations, government, non-profits, labor organizations, and educational institutions.”
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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.
Trump Tariff Chaos – Latest CAR Analysis is Grim
The Center for Automotive Research (CAR) released today a new analysis* of the impact of potential tariffs on imported auto parts and light vehicles. It tackles what impact will a uniform 25% tariff on all trading partners have on the automotive industry overall?
“The analysis emphasizes the complexity of the modern automotive supply chain, noting that ‘the modern automotive supply chain is both global and complex, convoluting the seemingly simple question of the cost of 25% tariffs on the industry,’ and that ‘automakers and their suppliers are often multinational companies with facilities spread out across the world,’ making it difficult to discern how much of a vehicle is domestically produced,” said Dr. K. Venkatesh Prasad, Senior Vice President of Research and Chief Innovation Officer at CAR.**
Key Findings
*The new CAR study uses both top-down and bottom-up approaches to estimate tariff impacts.
**T he Center for Automotive Research (CAR) says it “produces industry-driven research and analyses; develops forecasts; fosters dialogue and convenes forums; and publicly disseminates our research through events, our website, and the media.
“As an independent, non-profit, research organization with a multi-disciplinary approach, CAR engages with leaders in the global automotive industry to support technology advancements and improve the competitiveness of the U.S. automotive industry. We succeed through close collaboration and strong relationships with automakers, suppliers, industry associations, government, non-profits, labor organizations, and educational institutions.”
AutoInformed on
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.