U.S. automakers paid $10.6 billion in tariffs on Canadian and Mexican vehicle imports.
Most automakers have absorbed tariffs, but price increases are expected as costs grow.
USMCA compliance offers partial relief from 25% tariff on non-U.S. content in vehicles.
U.S. automakers paid an estimated $10.6 billion in tariffs on vehicles and auto parts imported from Canada and Mexico during the first 10 months of 2025. Companies have so far absorbed most of the tariff costs rather than passing them on to consumers. However, consumers should expect vehicle prices to rise as manufacturers seek to offset shrinking profit margins.
The estimate, according to an analysis by Anderson Economic Group released October 16, combines U.S. Census Bureau trade data through July with projected costs from August through October. The figures highlight the mounting cost pressures faced by automakers in relation to ongoing trade restrictions.
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“There is no way for $10 billion to be absorbed by the automakers and suppliers alone,” said Patrick Anderson, CEO of Anderson Economic Group. “Consumers and workers are going to bear some of these costs.”
The $10.6 billion estimate includes only tariffs on imports from Canada and Mexico. It does not account for tariffs on goods from other countries or on steel, aluminum, and derivative products, which also impact auto manufacturing. As a result, actual tariff costs for the industry are higher than reported.
Most of this year’s tariff revenue began accumulating in April, following the U.S. administration’s implementation of a 25 % duty on imported vehicles and parts from North American trade partners. The policy exempts or reduces tariffs for goods that meet United States-Mexico-Canada Agreement (USMCA) origin rules.
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Under the USMCA framework, compliant vehicles are subject to the 25 % tariff only on their non-U.S. content value. USMCA-compliant parts are not subject to duties. Tariffs vary by trade relationship. Vehicles imported from the European Union and Japan are subject to a 15 % duty under separate frameworks. The U.S. and South Korea have agreed to similar terms, though implementation is pending. Imports from the U.K. face a 10 % tariff on the first 100,000 units per year. A 25 % tariff remains in place for vehicles from other countries not covered by trade agreements.
Between January and July, U.S. Customs collected $6.45 billion in tariffs on Canadian and Mexican vehicle and part imports. Anderson Economic Group estimates that importers paid approximately $1.4 billion per month from August through October.
Source: Automotive News
