For anyone wondering when President Donald Trump’s back-and-forth tariff policies are going to begin affecting segments of the American economy, leaders of the Big Three automakers say they have an answer.
And the answer is: Now.
General Motors and Stellantis, the parent company of Chrysler, said this week tariffs have, at least in part, cost them billions of dollars.
GM officials said Tuesday that tariffs on imported cars and auto parts cost the nation’s largest carmaker $1.1 billion in the second quarter, CNN reported.
That hit to its bottom line was largely responsible for a 21% drop in net income for the period, the network reported, and GM also said it figures tariffs will cost it between $4 billion and $5 billion by the end of the year.
Meanwhile, Stellantis officials said this week tariffs had cost the company some $350 million in the first half of the year, and they expect that number to climb to some $2.7 billion.
Vehicles imported to the United States since April 3 now carry a 25% tariff. According to figures compiled by S&P Global Mobiity, GM built nearly 1 million vehicles in Canada and Mexico in 2024. That’s some about 36% of its total North American production, though not all are sold at dealerships inside the U.S. GM also imported about 100,000 cars from South Korea that were sold in the United States.
All cars built in an American factory have at least some imported parts; often more than 50% of their parts are imported. While some of the parts imported from Canada are tariff free, many other parts have carried their own 25% tariffs since May 3, according to the report.
Among the cars Stellantis sells in the United States – built both domestically and imported – are under the Jeep, Ram and Dodge and Chrysler brands. Stellantis also also imports vehicles for Italian brands Fiat and Alfa Romeo.
Its preliminary financial results show a net loss for the first half of the year, CNN reported, though that was due to reorganization efforts that went beyond the tariffs.
Earlier this week, Trump announced a trade deal with Japan that would cut tariffs on Japanese imports to 15%, while leaving tariffs on imports from Mexico and Canada – with whom the U.S. does far more trading – at 25% (Trump is considering hiking tariffs on Mexico to 30% and Canada to 35% on Aug. 1).
Announcement of that deal prompted the American Automotive Policy Council, a group representing GM, Ford and Stellantis, to voice concerns about the deal.
AAPC spokesman Matt Blunt said the group is “still reviewing” the agreement but “any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,” according to Reuters.
White House spokesman Kush Desai defended the deal, calling it “a historic win for American automakers by putting an end to Japan’s unfair auto trade barriers for American-made cars,” according to Reuters.
It’s not the first time the AAPC has criticized a trade deal. Back in May, the group criticized a deal with Britian.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at a 10% tariff rate, almost the total Britain exported last year, according to Reuters.
“This hurts American automakers, suppliers, and auto workers,” AAPC said at the time.
