The North American automotive industry is navigating a critical period of trade uncertainty, rising costs, and increasing global competition.

During CAR MBS 2026, the Center for Automotive Research convened automakers, suppliers, researchers and representatives from the United States and Canada for a roundtable discussion on the Impact of Automotive Tariffs: Understanding the Effects on Parts, Tooling and Vehicles.

The discussion highlighted how rapidly changing tariff policies are affecting manufacturing decisions, supplier finances, tooling capacity, innovation investment and the competitiveness of the integrated North American automotive industry. Participants noted that these pressures are compounding existing challenges, including supply-chain disruption, workforce constraints, stranded capital and slower-than-anticipated electric vehicle demand.

Key takeaways from the discussion include:

• Tariff changes implemented without sufficient transition periods can conflict with the long lead times required to qualify suppliers, purchase tooling and establish new production capacity.

• Suppliers are absorbing growing costs to preserve customer relationships, creating financial pressure that may not be immediately visible across the supply chain.

• Companies are delaying programs and reducing investments in research, talent and advanced manufacturing to manage near-term costs.

• Tooling constraints and longer domestic lead times are creating additional challenges, particularly for smaller Tier 3 and Tier 4 suppliers.

• North American automotive competitiveness depends on coordinated trade and industrial policies that recognize the integrated nature of production across the United States, Canada and Mexico.

• Predictable, phased policies can provide companies with the time and certainty needed to make long-term sourcing and investment decisions.

The roundtable underscored that tariffs cannot be considered in isolation. A successful North American automotive strategy must also address innovation, workforce development, tooling capacity, regulatory efficiency and supply-chain resilience.

CAR will use the perspectives gathered during the discussion to help inform future research on tariffs, USMCA, automotive investment and North American competitiveness.

Read the executive summary: Impact of Automotive Tariffs: Understanding the Effects on Parts, Tooling, and Vehicles

CAR remains committed to providing independent research and convening industry and policy leaders around the issues shaping the future of the automotive ecosystem.