Americans Could Soon Pay Higher Prices for Cars Due to New Tariffs

(The Center Square) – A recent analysis warns that President Donald Trump's new tariffs on passenger vehicles could lead to significant price increases for American consumers already struggling with high car prices. The Center for Automotive Research highlights the intricate nature of the automotive supply chain, with noted complexity making it hard to gauge exact impacts of the proposed 25% tariffs on vehicles and parts. Automakers are particularly vulnerable, notably those producing lower-cost vehicles, as estimates suggest that nearly 80% of vehicles priced under $30,000 would be impacted. Moreover, the average cost of tariffs could amount to $4,239 for vehicles using imported parts and $8,722 for imported cars directly, leading to an estimated overall industry cost increase of $107.9 billion. Analysts forecast that consumers may see vehicle prices rise by 10-15%, along with potential production disruptions as manufacturers adjust to the new tariffs. Beyond price hikes, these tariffs signify a potentially transformative moment for the automotive industry, fostering deeper structural changes that could affect future production methods and locations.