August 10, 2025

American automakers are reeling from billions in tariff-related losses, with steep import duties on components and other content slashing profits and driving up costs despite the cars being built in the US.

General Motors, the top-selling automaker in the US, reported a 35 percent drop in net income in the second quarter, with tariffs costing it $1.1 billion. This adds an estimated $4 billion to $5 billion in annual expenses.

Ford, the second-largest US automaker, faces a $3 billion hit to its 2025 earnings, with $800 million in tariff costs in the second quarter alone. A major aluminum consumer in the auto industry, Ford sources the metal from suppliers that are passing on the 50 percent duty via their pricing.

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