U.S. Steel and Aluminum Tariffs Add $6.5 B Cost to GM Since 2025
Since 2025, U.S. steel and aluminum tariffs have imposed $35.4 billion in added costs on global automakers, with General Motors bearing roughly $6.5 billion through higher input duties. Tariffs have boosted GM’s production costs by as much as $400 per vehicle, squeezing its margins and complicating North American supply chains.
1. U.S. Trade Tariffs Overview
Washington imposed a 25% tariff on steel and 25–50% on aluminum imports starting in 2018, triggering downstream duties of up to 50% on auto parts. Since 2025, these measures have generated $35.4 billion in additional expenses for global automakers, elevating material costs across the industry.
2. General Motors’ Tariff Burden
Of the cumulative $35.4 billion cost, GM has absorbed approximately $6.5 billion through higher duties on steel, aluminum, chassis and axle imports. These added expenses have directly eroded the automaker’s operating margins on both domestic and imported vehicle production.
3. Cost Pass-Through and Supply Chain Impact
Tariffs have increased GM’s per-car production cost by up to $400, forcing suppliers to raise prices in successive stages. This compound effect disrupts GM’s integrated North American supply network and risks dampening U.S. vehicle demand if cost increases are passed on to consumers.