Trump's 50% Steel Tariff Could Drive Up The Costs For Automakers: 'Almost $2,000 Of Cost For Each Car'

President Donald Trump's 50% Tariff on steel imports could drive up the costs for auto manufacturers in the U.S. as the sector scrambles to restructure its supply chain.

What Happened: Trump's decision to impose the tariffs will push prices higher in the auto industry, Bloomberg's Matthew Miller said in an interview with MSNBC.

"Steel represents about 2800 pounds of each car," Miller said in the interview. "It's over a $1,000, almost $2,000 of cost for each car and it's getting back to record prices because of these tariffs." He added.

He then went on to mention that a ton of hot, rolled steel could cost the automakers almost $1,000 extra, which will push the prices up.

Why It Matters: The news comes in as Trump recently backed United States Steel Corp.'s X takeover by Japan's Nippon Steel, while saying that the 50% steel tariffs would "further secure the steel industry in the United States."

Earlier, the president had imposed a 25% tariff on steel imports into the U.S., which drew criticism from major U.S. allies globally as well as automakers in the country.

Tariffs have been a tricky affair for automakers to navigate, with several major players reporting increased costs as well as pulling earnings guidance for the year due to tariff uncertainty.

However, the tariffs have also found support among some companies, with General Motors Co. CEO Mary Barra hailing the tariffs as a positive development. "Tariffs is one tool that the administration can use to level the playing field," Barra recently said in an interview.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next: