Tariff Impact Analysis on Automakers in the United States​: 25% Tariffs – Imported Auto Parts and Light Vehicles

Full Description:

CAR developed a tariff modeling framework for AAPC to assess the impacts of initially proposed tariffs on automobiles and auto parts. The analysis combined unique top-down and bottom-up approaches to estimate cost exposure across the industry, enabling detailed assessment by automaker, region, and vehicle model to support data-driven policy and industry discussions.

Granular-level modeling is essential for understanding tariff exposure: Combining top-down and bottom-up approaches enables cost impacts to be assessed at multiple levels, including by automaker, region, and vehicle model—revealing differences that aggregate estimates can obscure.

Tariff impacts are unevenly distributed across the automotive industry: The analysis showed that cost exposure varies significantly across manufacturers and geographies, underscoring the importance of detailed, disaggregated analysis when evaluating trade policy effects.

A robust modeling framework is critical for upcoming USMCA review: As the U.S.–Mexico–Canada Agreement enters its review phase, a flexible, transparent tariff modeling framework is necessary to evaluate potential policy scenarios and their implications for North American automotive supply chains.