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Key Takeaways
- In a recent report, Anderson Economic Group analyzed the impact that new tariffs imposed by the Trump administration are expected to have on auto prices.
- AEG predicts the smallest hits will be on small crossovers, and sedans, assembled in the U.S.
- According to an analysis, the value of older cars will likely increase alongside those that are newer.
New analysis says that Americans buying cars this year can expect the latest tariffs will push up prices, sometimes by thousands of dollar.
Today, a new round of 25% tariffs by the Trump administration on imported autos went into effect. This is part of a broader reworking of US trade policies by the president. In a recent report, the consulting firm Anderson Economic Group estimated that new tariffs would cost Americans $30 Billion in their first year.
"If you are in the market for a new car and you find one you like, my advice is to buy it right away," Anderson CEO Patrick Anderson said. "If you have a used car you rely upon, my advice is to make sure it is well maintained as you are likely to use it for a while longer than you had earlier planned."
Anderson’s analysis looked at the impact of tariffs in determining the price of vehicles from GM (GM), Ford F, Toyota, Honda, Tesla TSLA, and Chrysler as well as BMW Kia and Mercedes Benz vehicles assembled in America. Some of their estimates include:
- Tariffs of between $2,500 and 4,500 will be applied to certain small crossovers, sedans, and mid-sized SUVs assembled in the U.S. This group includes the Honda Civic, Odyssey, Chevy Malibu and VW Jetta.
- Estimated tariff impacts of $5,000 to 8,500 will be felt by mid-sized cars, such as a passenger van or SUV, as well as some pickup trucks. Some Jeep, Ram, Toyota, Chrysler Pacifica, Bronco Sport, and other truck models are included.
- AEG’s most-impact category includes some luxury SUVs as well as some battery-electric vehicles. The expected impact is above $10,000. This group includes models such as the Chevy Suburban and GMC Yukon. Cadillac Escalade, BMW X5, Ford Mustang Mach-E, and GMC Yukon are also included. Many models in this group are assembled in the U.S. using parts from Canada and Mexico.
According to Anderson, the tariffs on smaller European-assembled cars could range from $8,000 to $10,000. Luxury sedans, SUVs and sports vehicles, however, could face tariffs of up to $20,000, based on AEG’s estimates. The latter category includes vehicles made by Audi, BMW and Jaguar-Land Rover as well as Mercedes-Benz, Genesis and Lexus.
Anderson said that the value of older cars will likely increase alongside those of newer models.
