Auto tariffs loom, and so do higher car prices, experts say
The Brief
President Trump's 25% tariffs on auto imports take effect on April 3.
The tariffs, or import taxes, will trigger new car prices to soar, analysts say.
The price of some cars could jump by as much as $10,000, according to one estimate.
(FOX 9) - President Trump's impending auto tariffs will rapidly raise car prices, potentially causing a sales slump and leading to job losses, experts said.
The backstory
President Trump's decision to levy 25% tariffs on auto imports threatens to dramatically increase car prices and slow sales, experts tell FOX 9.
The tariffs could also prompt automakers to discontinue manufacturing certain models altogether.
Trump's tariffs
Trump suggested the tariffs will incentivize automakers to manufacture in the U.S., something many already do.
But even automakers that assemble vehicles in the U.S. often use imported parts, experts note.
The White House said it expects the tariffs to generate $100 billion in revenue annually.
Increasing prices
Most cars could increase in price by anywhere between $4,000 and $10,000, according to Anderson Economic Group, a Michigan-based research firm.
The price of electric vehicles could rise by $12,000 or more, the firm said.
How soon could it happen
Car prices could rise in a few months, analysts say. They also noted that prices started to tick up in March, as discussions about tariffs swirled.
What they're saying
"Unavoidably, we see this cost increase as meaning fewer people buy cars, and, unfortunately, job losses in the U.S.," said Patrick Anderson, the firm's CEO. "If you make this car with that transmission $2,000 more expensive than the car next to it, you'll probably just stop making this car."
What's next
The tariffs take effect at midnight on April 2, while tariffs applying to auto parts will be phased in through May 3.
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