In a shocking turn of events, the U.S. auto industry is reeling as General Motors and Ford face a staggering $34 billion loss, a direct consequence of tariffs imposed during the Trump administration. As red numbers flashed across financial hubs from Detroit to Wall Street, the reality of this economic fallout began to sink in. GM alone reported a jaw-dropping $1.1 billion hit to its fourth-quarter profits, with rising costs of steel and aluminum crippling profit margins and sending investors into a frenzy.

The tariffs, designed to bolster domestic manufacturing, have instead created a perfect storm of financial strain. GM’s costs for high-strength steel surged from $920 to $1,140 per ton, leading to a $12 increase per vehicle—a seemingly minor figure that, when multiplied across production lines, translates to millions lost. Ford is not faring any better; its electric F-150 Lightning project now faces a 15% budget increase, forcing the automaker to consider shifting production to lower-cost regions like Brazil and Mexico.

As supply chains buckle under the pressure, the impact is felt throughout the industry. Delays in steel deliveries and rising labor costs threaten to halt production lines, while union representatives express growing concern over the lack of a clear strategy to protect workers’ wages. The European Union’s 25% import tariff adds further strain, complicating GM’s operations and pushing costs to new heights.

With the financial climate worsening, both companies are at a crossroads. They must either radically shift their investment strategies or implement unprecedented cost-cutting measures to survive this crisis. As the clock ticks, the fate of the American auto industry hangs in the balance, caught in a web of tariffs, rising costs, and an uncertain future. The question remains: can GM and Ford navigate this turmoil, or will the Trump tariffs leave a permanent scar on Detroit’s economic landscape?