Trump tariffs set to raise U.S. auto industry's costs by $61bn

NEW YORK -- New tariffs imposed by U.S. President Donald Trump on imports from Mexico, Canada and China will increase costs for the auto industry within the U.S. by $61 billion yearly, an analysis shows, suggesting that a policy aimed at restoring competitiveness could have the opposite effect.

On Tuesday, a 25% tariff took effect on imports from Mexico and Canada, while additional tariffs on imports from China rose to 20% from 10%. Automobiles and auto parts account for 27% of total imports from Mexico and 12% from Canada, the U.S. Commerce Department reports.