If you’re in the market for a new car or truck, possible price hikes should be on your radar. On March 26, 2025, the White House announced that new tariffs on imported vehicles would begin on April 3. The latest developments follow a one-month delay that resulted from President Trump’s discussions with the ‘big three’ U.S. automakers. In a shift from previous tariffs, the new auto tariffs apply to all vehicles imported into the United States. However, cars imported from Mexico, Canada, and China are likely to be most impacted due to the complexity of North American supply chains. Here’s what car buyers should know as spring car buying season gets underway.
Which Vehicles Are Affected By Tariffs in 2025?
Several of the most popular new cars and trucks sold in the U.S. are manufactured or partly assembled in Canada, Mexico, and China. However, the impacts of tariffs on the U.S. auto industry are much more wide reaching than it may seem on the surface. This is due to closely intertwined automotive supply chains spanning the three North American manufacturing hubs.
A new report from S&P Global Mobility forecasts that lost production due to tariffs could reach 20,000 units per day that are not built. This would equate to one third of North American vehicle production being lost due to tariffs.
It remains unclear how quickly consumers will begin to see higher sticker prices and lower incentives. What we do know is which new cars and trucks are most severely impacted. Here’s a look at some of the models now facing higher costs due to the tariffs, including average selling prices and market supply data as of March 26, 2025.
Cars and Trucks Imported From Mexico
The following new cars, SUVs, and trucks are manufactured in Mexico, and sold in the United States. Note that many other models contain parts that are manufactured in Mexico and imported into the U.S. for final assembly.
All prices and market data are as of March 3, 2025, reflecting the state of the car market before tariffs officially began.
In 2025, 20 models of new cars, SUVs and trucks are manufactured in Mexico for export to the United States. The automakers likely to be hardest hit by President Trump’s tariffs are Nissan, Volkswagen, Ford, and General Motors. Due to Volkswagen’s smaller model lineup, the German automaker will feel an outsized impact with three popular models being produced in Mexico.
Buyer’s looking for one of the more affordable new cars on sale today will be impacted by tariffs. Three popular models among budget buyers are all produced in Mexico: the Nissan Kicks, Nissan Sentra, and the new Kia K4. Finding a new car under $25,000 will become even more difficult in 2025 due to tariffs.
Cars and Trucks Imported From Canada
In 2023, the United States imported 141,847 motor vehicles and parts from Canada, a record high. These new cars are manufactured at facilities located in Ontario, with a large portion exported to the United States. In 2023, the U.S. was the largest market for Canadian automotive exports, making up 62% of total auto exports. Here are all of the cars and trucks manufactured in Canada for export to the U.S. in 2025:
Stellantis and Honda will be hardest hit by tariffs on Canada in 2025. The Civic and CR-V are top-sellers for Honda. As models known for their affordability and overall value, it will be interesting to see if Honda Motor American Honda Motor, the North American branch of Honda Motor Company, decides to pass import tariffs on to car buyers in the form of MSRP hikes or severe reductions in incentives.
Continue to check back each week as we monitor the real-time impact of tariffs on car prices for these affected models.
Ford and General Motors Most Impacted By Tariff On China
Just a handful of new cars are produced in China for export to the United States. The following models will be subject to the 10% tariff on imports from China:
- 2025 Buick Envision
- 2025 Lincoln Nautilus
- 2025 Polestar 2
- 2025 Polestar 3
Polestar, no longer under Volvo’s umbrella, is going to be hit the hardest from the tariffs on Chinese imports. Sales of Polestar’s electric vehicles have already been falling in North America due to competitors with faster charging, more driving range, and lower price tags. If tariffs continue for months on end, it’s not clear if Polestar will see 2025’s challenges as reason enough to exist the North American market entirely to focus on more favorable tides in Europe and Asia.
What Should Car Buyers Do?
If you’re shopping for a new car, here’s what you need to know:
- Expect price increases – If you’re considering a vehicle made in Canada, Mexico, or China, it may be wise to buy sooner rather than later before dealers fully adjust their pricing.
- Consider domestic alternatives – U.S.- built models won’t face these tariffs, which could make them a better deal. Keep an eye out for the best new car incentives of the month.
- Look at the used car market – If new car prices rise too much, well-maintained used models may offer more value. Many drivers find the most value in three-year old models with low mileage and a clean history. Buying used means that you’re avoiding the steep depreciation that every new car buyer faces today.
- We recommend that all car buyers see if their next vehicle could be impacted using our free auto tariff calculator. If the car or truck you’re in the market for is on the list, buying as soon as possible (or waiting it out) could save you thousands of dollars.
CarEdge’s Take
These tariffs are already reshaping the auto market, and will cost both consumers and automakers money. Whether automakers shift production to the U.S. in response remains to be seen, but for now, buyers should be prepared for rising costs in the form of rising MSRPs and a reduction in incentives, like zero percent financing.
If you have been considering shopping around for a better insurance rate, now is the time. Tariffs are likely to drive premiums even higher in 2025 as car parts are subjected to the levy. Compare quotes today to lock in your rate before the coming hikes.
CarEdge will continue tracking these developments and providing insights on how they affect car prices, financing, and buying strategies. Stay informed, and check out our free car buying tools to help you navigate the challenges ahead for car buyers in 2025.
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