Trump’s Tariffs: 15 Car Brands That Will See Price Hikes

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For those considering a car purchase before the end of the year, President Donald Trump’s tariffs could mean cutting a much bigger check for your new ride. In fact, consumers looking to buy a new vehicle will get hit the hardest with the estimated $30 billion cost, which looks to push car prices up about $2,000 per person.

Before you head to your local dealership, here’s a look at how these tariffs could impact the car market.

How Will Trump’s Tariffs Affect Cars in 2025?

A tariff, which is a form of tax on imported goods, is designed to protect American companies from foreign competition by making similar imported goods more expensive. Payment of the U.S.-imposed tariff falls on the person or company that imports the product, which can be passed along to the consumer in some cases.

According to the International Trade Administration (ITA), Mexico and China are two of the world’s largest vehicle manufacturers. In fact, Consumer Reports noted that there are even several American and European brands that sell Mexican and Chinese-built vehicles in the U.S.

Many automakers build smaller, lower-cost vehicles in Mexico or other countries due to slim profit margins and lower labor costs. Because of this, the only way to get around the costs of these tariffs would be for automakers to build cars in the U.S., which comes with its own cost implications. Some economists predict that Trump’s Tariffs are expected to drive up auto costs anywhere between $4,000 to $12,500 by the end of the year, depending on what type of car you buy and where it comes from.

Here are the main takeaways regarding the Trump White House administration’s tariff implementation — and the ways it could impact costs for car buyers and owners alike. 

• The current tariffs on imported cars to the U.S. are 25% on many vehicles and certain auto parts. This tariff, imposed by the Trump administration, is in addition to the existing 2.5% base tariff and was invoked as a national security threat under Section 232 of the Trade Expansion Act.
• A broader policy, called a reciprocal tariff, essentially applies a 10% baseline tariff on imports from most countries, with higher rates, sometimes over 20%, for partners with large trade deficits with the U.S. 
• Some countries face substantially higher rates. For example, China faces increased reciprocal auto tariffs, while the European Union and Japan have negotiated deals for a 15% tariff on vehicles, but many trade deals remain in flux and could be subject to higher tariffs.
• Trump established 25% tariffs on steel and aluminum. These rates are a major new consideration for the auto sector, which relies on a complex international supply chain through now greatly impacted trading partners.
• As tariffs have now been implemented for the most part, the cost for vehicles and auto parts will undoubtedly increase, which is unfortunate, as prior to this, the auto market had shown signs of stabilizing. 
• The timing of the tariffs goes against the 0.3% decrease in new vehicle prices since last year (according to the recent consumer price index data). However, used cars and trucks went up 0.8% since that time; meanwhile, both new and used are still lower than the current 2.8% core inflation rate in general, but that is estimated to go up. 

15 Brands That Will Be Most Impacted by Trump’s Tariffs

Though the administration has offered an offset to the tariffs for manufacturers who assemble vehicles in the U.S., a domestic vehicle’s reliance on foreign components means that even American-made cars are not exempt from all tariff costs.

While not every car model may see price increases right away, many analysts and auto experts predict these car brands could get more expensive as a direct result of Trump’s tariffs. This is based on where certain vehicles are manufactured and where their parts are imported from.

• BMW
• Buick
• Dodge
• Ford
• Honda
• Jeep
• Kia
• Mazda
• Nissan
• Ram
• Polestar
• Subaru
• Toyota
• Volkswagen
• Volvo

Josephine Nesbit contributed to the reporting for this article.

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