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- Auto tariffs could trigger job losses far beyond the factory floor — report
Auto tariffs could trigger job losses far beyond the factory floor — report
New data reveals the ripple effect could reach industries like healthcare, housing, and more. (2 min. read)
Marcus Amick
May 07, 2025
An employee in the paint shop at Stellantis’ Detroit Assembly Complex
A new analysis warns not to underestimate the impact of the auto tariffs on jobs and the U.S. economy.
Sure, there have been several studies digging into how the levies could potentially affect auto industry employment—but a deeper dive by Implan, a software and data company, provides more insight into how it could all play out on a broader scale.
The details: To illustrate the point, Implan provided CDG News with projections that zero in on the recent layoffs at Mack Truck, Volvo, and Stellantis—amounting to a total of 1,250 job losses for all three companies.
Those 1,250 direct jobs in the sector—if lost permanently—could trigger the loss of roughly 8,200 more jobs in the supply chain and from reduced household spending.
For every 1 job lost from the three vehicle manufacturing companies, an additional 6.6 jobs will be lost in supply chain industries and industries associated with healthcare, housing, and entertainment.
The direct job losses support approximately $293M in GDP, according to Implan’s findings.
Between the lines: The shifting dynamics of the tariffs creates uncertainty in many of the other industries associated with the transportation section as well—which could deepen the impact on businesses unable to adapt to the changes.
Zeroing in: Implan’s findings zero in on the direct and indirect impact of the roughly 450 workers still on furlough at Stellantis, half of the total 900 who were laid off in April.
If those workers aren’t called back to work, those direct job losses could trigger approximately 3,205 U.S. job losses.
For every 1 job lost from Stellantis, an additional 7.1 jobs will be lost in supply chain industries and industries associated with normal household spending.
The direct job losses support approximately $145M in GDP.
What they’re saying: “When any of these layoffs are reversed and employees are back at work, we would expect the economy to return to levels of employment that existed prior to the layoffs. For example, if 450 Stellantis employees return to work, we would expect the total affected employees returning to work to be approximately 3,200, including those on the factory floor,” explained Implan’s Candi Clouse.
Bottom line: Given that the tariffs were just enacted, we can’t even begin to assess the impact of the measures on the economy and communities. However, it’s clear that automakers and dealers aren’t the only ones tied to the transportation and automotive sector that should be adjusting their operations to mitigate the damage.
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