President Donald Trump’s tariffs are expected to send car prices soaring by as much as $12,000 per vehicle, according to automotive experts. On Tuesday, Trump plans to impose sweeping tariffs—an import tax paid by American companies that is typically passed along to consumers—on products from Canada and Mexico, raising prices on vehicles and vehicle parts manufactured in those countries.
If Trump follows through with his pledged tariff rate of 25 percent, automotive groups say it will cost at least $4,000 more to build crossover utility vehicles. A large SUV with “significant” parts manufactured in Mexico will see an increase of $9,000, while a pickup truck will see an $8,000 increase. The price to produce an electric vehicle will jump $12,000.
In each case, the increased costs will lead to comparably higher prices, which analysts say will quickly result in fewer sales. Best sellers including the Chevrolet Silverado pickup truck and Ford Bronco Sport SUV are likely to be affected.
Car sales have already suffered recently thanks to high prices and elevated borrowing costs. Even before the tariffs, sticker prices were up more than 20 percent this year compared to 2020.
