With President Trump’s big tariffs only a day away, a new report finds huge price increases are coming for Americans looking to buy a new car or truck.

The Anderson Economic Group (AEG) found that vehicles like EV crossovers could have price hikes of over $12,000 depending on the vehicle if proposed tariffs of 25% go into effect on Canadian and Mexican imports. According to news reports, Trump is expected to decide on tariff levels today.

The tariffs don't just affect vehicles imported from those countries, but also parts that cross over the border many times during the production process, adding to additional tariff costs. The costs would almost all be passed on to US buyers, the study said.

Other popular vehicles, like a standard, gas-powered crossover, could see hikes of at least $3,500, while pickup trucks — a staple of working-class Americans and small business owners — could see costs jump as much as $8,000 due to the tariff effect.

Full-size SUVs could see costs rise by $9,000, and small cars could see a hike of $6,200.

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Even more shocking is that AEG's report doesn't include the effect of Trump's steel and aluminum tariffs, which would hike production costs even more.

Tariff price hikes arrive just as the average cost of a new vehicle hit $47,465, per research site Edmunds, with nearly 1 in 5 consumers paying $1,000+ in monthly car payments.

Trump, who will address both houses of Congress on Tuesday night, said last week that tariffs were back on the table for Mexico and Canada following a monthlong negotiation timetable that is expiring. The tariffs come as the most recent CPI report showed prices rising more than expected.

Last week, executives from GM (GM), Ford (F), and Stellantis (STLA) held a meeting with the Commerce Department to “warn of the dire economic consequences of the proposed tariffs,” per a report from Bloomberg.

Ford and Stellantis pressed the White House to target the millions of imported vehicles with no US parts content, a source told Bloomberg. Ford CEO Jim Farley complained in the past that automakers like Hyundai and Kia face no new tariffs despite building many of their vehicles in Korea, which the US has a free trade agreement with, similar to Mexico and Canada with the USMCA.

"What doesn’t make sense to me is why we’re having this conversation while [South Korea's] Hyundai-Kia is importing 600,000 units into the US with no incremental tariff, and why is [Japan's] Toyota able to import a half a million vehicles into the US with no incremental tariffs?" Farley said during Ford’s Q4 earnings call. "I mean, there are millions of vehicles coming into our country that are not being applied to these, so if we’re going to have a tariff policy … it better be comprehensive for our industry."

Farley added, “We can’t just cherry-pick one place or the other because this is a bonanza for our import competitors.”

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Many popular vehicles built by the Big Three would be affected by tariffs on Canada and Mexico.

GM produces the Silverado and Sierra pickups in the US, Mexico, and Canada, and Ford sells Mexican-made Maverick pickups, Bronco Sport SUVs, and Mustang Mach-E EVs in the US. Stellantis builds the Chrysler Pacifica minivan in Canada, as well as the Dodge Charger Daytona EV.

Volkswagen (VOW3.DE) builds its volume seller, the Tiguan SUV, in Mexico, among other models, and even BMW produces its enthusiast sports car, the M2, at its plant in central Mexico.

GM CEO Mary Barra has said the company may shift some production to the US if the tariffs come to pass, which would increase costs for those vehicles.

As recently as Monday, Reuters reported that Honda (HMC) may build its next-generation Civic hybrid in the US instead of Mexico to avoid potential tariffs.

While bringing that production is a goal of the Trump White House, it remains to be seen if US consumers will be happy to pay more for US-made vehicles.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.

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