President Trump’s tariffs on imported cars and trucks are likely to increase prices for US consumers by thousands of dollars, trade groups and experts warned.
President Donald Trump on Wednesday announced a 25% tariff on all imported passenger vehicles and key parts, set to take effect on April 2. This decision is anticipated to significantly hike the sticker prices of cars, trucks, and SUVs, potentially by thousands of dollars, leading to a decline in shares of numerous automakers in late Wednesday trading.
The tariffs impact not only foreign manufacturers but also many domestic brands, such as Chevrolet from GM. For instance, the transmission of an Equinox SUV may be manufactured in the US, then sent to Mexico for final assembly before finally arriving at a dealership in Omaha. Automakers depend on a complex supply chain that allows parts and vehicles to cross North American borders multiple times during the manufacturing process, aided by various regional trade agreements established over the years.
The White House noted that some imported parts compliant with the USCMA are exempt from these tariffs. Government data reveals that there are 39 models available in the US imported from either Canada or Mexico, coming from both domestic and foreign manufacturers.
Experts estimate that manufacturing costs could rise by anywhere from $4,000 to $12,000, with automakers likely passing a substantial portion of these costs to consumers through higher prices. According to Edmunds data, the average price of new vehicles has surged since 2020, now exceeding $50,000.
Analysts at JPMorgan have labeled the newly imposed tariffs as “draconian,” revising their forecasts for numerous automakers downward. Among vehicles sold in the US, Ford imports the least, producing approximately 78% of its cars, trucks, and SUVs domestically. On the other hand, Mazda, Volkswagen, and Mercedes-Benz are identified as the highest importers, according to industry data. Electric vehicle manufacturers Tesla and Rivian are expected to be minimally affected, according to analysts.
A trade group representing Ford, GM, and Stellantis previously stated that these import costs would hinder American competitiveness, raise consumer prices, and reduce investments in US jobs. Vehicle parts and completed vehicles are the leading imports from Mexico and rank second only to oil imported from Canada. Prices for other vehicles dependent on imported components could also increase, even if their final assembly takes place in the US.
Here is a breakdown of models being imported for sale in the US and their manufacturing locations, according to data from the National Highway Traffic Safety Administration as of March 3:
- BMW
- BMW 2-Series Coupe/Convertible (Mexico)
- BMW M2 Coupe (Mexico)
- BMW 3-Series Sedan (Mexico)
42.7% of BMW cars sold in the US are made domestically, according to Edmunds data.
- Ford
- Ford Bronco Sport (Mexico)
- Ford Maverick (Mexico)
- Ford Mustang Mach-E (Mexico)
- Ford Mustang GTD (Canada)
78.3% of Ford vehicles sold in the US are made domestically, according to Edmunds data.
- General Motors
- Chevrolet Blazer (Mexico)
- Chevrolet Blazer EV (Mexico)
- Chevrolet Equinox (Mexico)
- Chevrolet Equinox EV (Mexico)
- GMC Terrain (Mexico)
47.3% of GM vehicles sold in the US are made domestically, according to Edmunds data.
- Honda
- Honda CR-V Hybrid (Canada)
- Honda Civic Sedan (Canada)
- Honda HR-V (Mexico)
- Honda Prologue (Mexico)
- Acurda ADX (Mexico)
58.9% of Honda vehicles sold in the US are made domestically, according to Edmunds data.
- Hyundai
- Hyundai Tucson (Mexico)
38.4% of Hyundai vehicles sold in the US are made domestically, according to Edmunds data.
- Kia
- Kia K4 (Mexico)
Kia is owned by Hyundai.
- Mazda
- Mazda CX-30 (Mexico)
20.3% of Mazda vehicles sold in the US are made domestically, according to Edmunds data.
- Mercedes-Benz
- Mercedes-Benz GLB (Mexico)
36.5% of Mercedes-Benz vehicles sold in the US are made domestically, according to Edmunds data.
- Nissan
- Infiniti QX50 (Mexico)
- Infiniti QX55 (Mexico)
- Nissan Sentra (Mexico)
- Nissan Kicks (Mexico)
- Nissan Versa (Mexico)
45.6% of Nissan vehicles sold in the US are made domestically, according to Edmunds data.
- Stellantis
- Ram 2500-5500 (Mexico)
- Ram ProMaster (Mexico)
- Jeep Compass (Mexico)
- Chrysler Pacifica (Canada)
68.2% of Stellantis vehicles sold in the US are made domestically, according to Edmunds data.
- Toyota
- Toyota Tacoma (Mexico)
- Toyota RAV4/RAV4 Hybrid (Canada)
- Lexus NX (Canada)
- Lexus RX (Canada)
44.1% of Toyota vehicles sold in the US are made domestically, according to Edmunds data.
- Volkswagen Group
- Audi Q5/SQ5 (Mexico)
- VW Jetta (Mexico)
- VW Taos (Mexico)
- VW Tiguan (Mexico)
27.8% of Volkswagen Group vehicles sold in the US are made domestically, according to Edmunds data.
