Recently announced tariffs on automobiles (and, potentially, parts) would cause increases in prices and other economic costs. The Perryman Group estimates that the US economy could lose hundreds of thousands of jobs if the tariffs are sustained.

The Perryman Group recently examined the losses (including multiplier effects and accounting for any offsetting gains in production by US manufacturers) assuming a sustained 25% tariff on automobiles and parts. The net cost of such a tariff on motor vehicles would be approximately $40.5 billion in annual gross product and about 339,300 jobs. If automotive parts are also included, the cost rises to $84.6 billion in annual gross product and 715,400 jobs. In addition, retaliatory tariffs would be likely, and such levies would reduce the competitiveness of US automobiles on world markets.

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