Trump’s 25% Auto Tariffs Hit Industry with $108B Costs and Price Rises

In March 2025, President Trump imposed 25% tariffs on imported autos and parts under Section 232, citing national security, with USMCA carve-outs but scrutiny on Mexico and Canada. This caused industry disruptions, cost hikes up to $108 billion, export declines, and sales slowdowns. Automakers absorbed initial burdens, but analysts predict 5-10% price rises and potential job losses amid uncertain long-term manufacturing gains.