If you’re contemplating buying a new car in the near future, be prepared to shell out more than you initially planned.
According to Statista, the US auto industry sold nearly 16,000,000 ‘light vehicle’ units last year, which include cars, vans, and small trucks, with 3,000,000 of those being passenger cars.
The cost of purchasing a new car in 2024 is expected to be around $48,000. While it’s no secret that car prices have been climbing over the years, they are projected to rise even further.
The reason behind this trend? The newly-imposed tariffs by Donald Trump.
Yesterday marked what President Trump referred to as ‘Liberation Day,’ during which he enacted potentially disastrous tariffs affecting nearly all countries worldwide.
“This is Liberation Day,” Trump declared during a speech.
“We’ve been waiting for a long time, April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to ‘Make America Wealthy Again.'”
In addition to a 10 percent tariff on all goods entering the US from almost every country, Trump is specifically targeting the auto industry, imposing a 25 percent import tax on cars and car parts.
As a result, experts predict a significant hike in car prices.
Anderson Economic Group (AEG) estimates that the tariffs could have a consumer impact totaling a staggering $30 billion in the first full year alone.
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For the least tariffed cars, AEG anticipates an added cost ranging from $2,500 to $5,000.
“For certain small crossovers, sedans, and one mid-sized SUV assembled in the United States, we estimate a tariff cost of $2,500 to $4,500,” AEG notes.
“The Honda Civic and Honda Odyssey had high US content and one of the lowest tariff costs in this group. The Chevy Malibu, VW Jetta, and Ford Explorer were also among the vehicles in this group that were less impacted by tariffs,” the group adds.
In another category, what AEG terms as ‘mid-sized vehicles’ could see price increases between $5,000 and $8,500.
“Some Jeep, Ram, and Toyota truck models are in this category,” the economic consultancy stated.
And which vehicles will be hit the hardest? Full-size SUVs.
AEG elaborates: “The large SUV category includes models assembled in the US with parts from Canada, Mexico, and Europe, and having relatively high [manufacturer’s suggested retail prices].
“These vehicles are expected to see a tariff impact of $10,000 to $12,000, with some battery-electric vehicles incurring a potential tariff exceeding $15,000.”
Additionally, certain luxury sedans, SUVs, and sports vehicles could face tariffs exceeding $20,000, according to the site.