By Mike Colias
American car buyers will eventually shell out more for new wheels as a result of the 25% tariffs on imports from Mexico and Canada, according to auto executives and Wall Street analysts.
The impact likely won't be felt for a couple months as car dealers work through inventories already on their lots, shopping site Cars.com says. If the tariffs remain in place for several weeks, though, the layers of cost injected into the industry could tack on thousands of dollars to the price car buyers pay, with estimates ranging from an extra $3,000 to as much as $10,000. Prices could go up most sharply on vehicles built north or south of the border, including popular models such as the Toyota RAV4 sport-utility vehicle and Chevrolet Silverado pickup truck.
But inflation is likely to hit every car model sold in the U.S., because they all use at least some foreign-made parts.
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March 04, 2025 13:27 ET (18:27 GMT)
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