Michigan-based Anderson Economic Group said Friday that tariffs could add unabsorbable costs for American automakers.

President Trump has shaken the automotive sector with threats of controversial new trade tariffs, which have not gone away.

Ford CEO Jim Farley said Tuesday that the tariffs, whether enacted or threatened, would be “devastating” for automakers, according to Bloomberg, and a “windfall” for Asian and European competitors who wouldn’t have to contend with the increased cost of production.

President Trump hasn't implemented most of the tariffs he's announced, but the uncertainty over when — or even if — he'll do so is already hurting the auto industry. Why it matters: It's a tumultuous time for automakers,

In a move that could shake up the global automotive sector, US President Donald Trump has threatened to place a tariff of around 25 per cent on cars imported into the United States.