• Trump's tariffs on Mexico and Canada are now live, and it's bad news for the Detroit "Big Three."
• Barclays analysts said the levies could wipe out "effectively all" of Ford, GM, and Stellantis' profits.
• All three have factories in Mexico, which is a major hub for the US auto industry.

Trump's tariffs are now a reality, and that is bad news for the Detroit automakers.

The 25% levies on all goods imported from Canada and Mexico, which went into effect yesterday, could have a devastating impact on the Detroit "Big Three" of Ford, GM, and Stellantis, analysts at Barclays have warned.

"In short, without any adjustment from automakers (i.e. no price increase, no adjustment in production plans), we estimate it could wipe out effectively all profits for the Detroit Three," Barclays analysts Dan Levy and Josh Cho wrote in a note on Tuesday.

The US auto industry is heavily entangled with its neighbors to the north and south, with car components often crossing the border multiple times during production.

As such, the tariffs enacted by President Donald Trump — which are now finally live after being paused for a month in February — will impact all automakers.

The Alliance for Automotive Innovation, which represents nearly every major US automaker, warned on Tuesday that the import taxes could see car prices rise by as much as 25%, while data forecaster S&P Global estimated that a third of vehicle production in North America could be cut by next week.

Shares in Ford, GM, and Stellantis all fell on Tuesday amid broader market turmoil on the tariff news.

Barclays analysts said that while no automaker will emerge unscathed from the tariffs, Ford, GM, and Stellantis — which includes brands such as Jeep and Chrysler — were the most exposed.

All three have factories in Mexico, which has become a hub for automakers thanks to its low labor costs, and produce key models for the US market in the country.

The analysts estimated the tariffs would add around $3,000 to the cost of a vehicle with half its parts produced in Mexico or Canada. They warned that moving production to the US would be difficult due to high labor costs and long lead times on capacity adjustment.

Ford, GM, and Stellantis did not immediately respond to requests for comment from Business Insider.

As Democrats hope to retain the governor’s seat in the swing state of Michigan with Gov. Gretchen Whitmer term-limited, a top Democratic figure has launched an independent bid, leading to a search on the left for an alternative standard-bearer.

Three-term Detroit Mayor Mike Duggan, viewed for some time as very likely to seek the governor’s office, reportedly surprised the state’s body politic by announcing he will do so as an independent.

"I went to Lansing and built relationships with Democrats and Republicans. We took our neighborhoods out of the darkness of burned-out streetlights and we lit the entire city to the national standard… and reduced Detroit's unemployment rate to its lowest rate in more than 30 years," Duggan said in his campaign launch video.

"The current system forces people to choose sides that find solutions. I want to see if I can change that."

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He struck a similar tone in recent remarks to reporters:

Duggan said in his final year as mayor he wants to "establish a working relationship with the Trump administration," and noted he had done so with fellow Motor City native HUD Secretary Ben Carson one term prior.

He also told The Associated Press he views many Americans as being "tired of both parties and tired of the system – and so I want to offer people a choice."

That choice led Democrats to reportedly pivot to a prominent Indiana native who recently moved north to his husband’s home state.

At an event with Detroit autoworkers, one man shouted a question about the Lions – rather than Transportation Secretary Pete Buttigieg’s home-state Colts – which the AP illustrated as a potential challenge for the Traverse City newcomer to connect with Michiganders if he decides to run.

Another man at the event praised Buttigieg’s willingness to be "one of the few" politicians to speak to both liberal and conservative media audiences.

Buttigieg has said he won’t make any official political decisions on "how to make myself useful" until after his current boss, President Biden, leaves office, but has been contacted by several Michigan Democrats about entering the race.

Duggan’s announcement, however, was met with derision from Michigan Secretary of State Jocelyn Benson, another potential Democratic contender.

"In moments like this, we don't flee from the party, but we stay and fix it," Benson told FOX-2, which reported she is considering tossing her hat in the ring.

Andrew Feldman, a Democratic strategist in the Great Lakes State, told the AP that people are "shocked and angry" at Duggan for eschewing the Democratic Party label.

"Many view this as a serious situation where Mike Duggan could put the governor’s mansion in the hands of Republicans and roll back years of progress," he said.

While the left wing is divided between Duggan’s independent run and jockeying to fill the Democratic row on the ballot, the Republican race appears wide open.

"You know what, [20]26 is always in the back of my mind, but right now, we’re focused on [20]24," conservative media host Tudor Dixon – the 2022 Republican nominee – said just before the presidential election when asked about running again.

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Other names floated in the Michigan press include businessman Perry Johnson – who briefly ran for president on the GOP line in 2024 – businessman Kevin Rinke, and several sitting GOP lawmakers.

Adding to the electoral uncertainty were Michigan’s 2024 split results, as voters there chose both Republican President-elect Trump and Democratic Sen.-elect Elissa Slotkin from the top-tier races. 

As for Whitmer, reports have viewed her as a top contender in the 2028 Democratic presidential contest, along with several other governors, like Pennsylvania’s Josh Shapiro, California’s Gavin Newsom, North Carolina’s Roy Cooper, Maryland’s Wes Moore, Illinois’ JB Pritzker and Minnesota’s Tim Walz.

Fox News Digital reached out to the Michigan GOP, Michigan Democrats and Buttigieg’s office for comment.