We’ve spent time covering President Donald Trump’s tariffs, both enacted and proposed. Throughout our coverage we’ve seen various numbers bandied about when it comes to how much more a new car might cost because of tariffs.
Now The New York Times is trying to pin it down.
The Times quotes a consulting firm, Anderson Economic Group out of East Lansing, Michigan, as saying that the price of a new car could go up by $4,000 to $10,000, and perhaps more for at least some EVs.
Keep in mind that while Trump has paused the 25 percent tariffs on goods flowing from Canada and Mexico, at least as it applies to automakers, until April, 25 percent tariffs on steel and aluminum went into effect this week.
Anderson’s estimate doesn’t include the steel and aluminum tariffs.
Remember that the average transaction price for new cars is already, without tariffs, hovering around $48,000.
From the Times:
“It’s a crazy situation for consumers, and even more difficult for manufacturers,” said Patrick Anderson, chief executive of the Anderson firm.
The tariffs would vary for different models, since different models use different amounts of imported components. Still, one analyst — TTAC podcast guest Tyson Jominy — says automakers could spread price increases out across their lines in order to make price increases for certain models seem less jarring.
Automakers could also pull back on selling the most expensive models.
The Times reminds car shoppers that we don’t know if the delayed tariffs will go into effect and if so, how long they’ll last. Cars already on lots aren’t subject to tariffs, as Cars.com’s Jennifer Newman points out, and the federal tax credit for certain EVs and hybrids hasn’t yet been cut.
Of course, if new car prices spike, used-car prices will also jump.
The Times piece is a good read for anyone planning to buying a car anytime soon — or just someone trying to get a handle on how tariffs will affect car buying.
Go check it out.
[Image: Jack_the_sparow/Shutterstock.com]
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