Planning to Buy a Car? Prepare to Pay More
Thinking about buying a new car soon? You’ll likely spend more than you originally budgeted.
Car Prices Already High — and Rising
In 2023, the U.S. auto industry sold nearly 16 million light vehicles, including 3 million passenger cars, according to Statista.
The average new car in 2024 costs around $48,000. While prices have steadily risen for years, they’re now expected to climb even higher.
What’s Causing the Spike?
Donald Trump’s new tariffs are to blame.
Yesterday, Trump marked what he called “Liberation Day” by imposing sweeping tariffs on nearly every country.
“We’ve been waiting for a long time. April 2, 2025, will forever be remembered as the day American industry was reborn,” Trump declared.
Tariffs Target Cars Directly
Trump announced a 10% tariff on all imports. But the auto industry took an even harder hit — 25% tariffs now apply to cars and car parts.
How Much More Will You Pay?
Experts predict a significant price jump.
The Anderson Economic Group (AEG) estimates that tariffs could cost American consumers $30 billion in the first year alone.
Entry-Level Cars: Up to $5,000 More
AEG expects lower-end vehicles to see added costs between $2,500 and $5,000.
“For certain small crossovers, sedans, and one mid-sized SUV assembled in the U.S., we estimate a tariff cost of $2,500 to $4,500,” AEG reports.
Less impacted models include the Honda Civic, Honda Odyssey, Chevy Malibu, VW Jetta, and Ford Explorer.
Mid-Sized Vehicles: Up to $8,500 More
Mid-sized models like Jeep, Ram, and Toyota trucks may increase by $5,000 to $8,500.
Full-Size SUVs: Up to $12,000 More
Large SUVs assembled in the U.S. with parts from Canada, Mexico, and Europe are the hardest hit.
These could rise $10,000 to $12,000 in price.
Luxury Cars: Tariffs Over $20,000
Some luxury sedans, sports cars, and battery-electric vehicles may see tariff costs over $15,000—with the priciest models facing over $20,000 in added fees.
