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.

Stellantis, maker of Jeep, Ram, and Chrysler, has similarly lost $350 million due to the levies.

Most vehicles assembled in the US rely heavily on foreign parts, with the White House estimating that 50 percent of them are foreign while Bloomberg suggesting the figure may be closer to 60 percent.

Consulting firm Anderson Economic Group estimates $2,000 to $3,000 in added costs per domestically built vehicle. Carmakers have largely absorbed these costs to avoid pricing out consumers at present, but analysts widely believe price hikes are coming.

Lenny LaRocca, a KPMG partner who leads the consulting firm's automotive practice, told The Wall Street Journal he expects US automakers to implement significant price increases early next year.

Cox Automotive estimates that imported cars could jump by $5,000, pushing the average new car price above $50,000 by year's end.

Sinking profits also threaten auto makers' ability to reinvest. While the US administration wants them to relocate assembly lines, new US factories require billions of dollars and years to build, making it a risky bet amid the unpredictable tariff shifts.

Moreover, Bank of America analysts note that for many suppliers, paying a 25 percent tariff is still cheaper than moving production stateside.