President Trump is expected to sign sweeping new auto tariffs at 4 p.m. today, marking a significant escalation in the administration’s ongoing trade battle. The move could directly impact car prices across the board, including the vehicle you might be shopping for in 2025.
Check if the car you’re considering is impacted by the new tariffs with this free Auto Tariff Calculator.
What We Know So Far
The new tariffs are part of Trump’s broader “reciprocal tariff” strategy, officially set to begin April 2. However, the president signaled earlier this week that auto-specific levies would come sooner — and now it’s happening. Markets reacted swiftly to the news, with auto stocks falling earlier today following Bloomberg’s initial report that new tariffs are likely to arrive this afternoon.
While exact details remain unclear, these tariffs could apply to both finished vehicles and auto parts, which would significantly affect not just imported cars, but also those made in the U.S. with foreign components. The White House has not clarified if any exemptions will be granted or how quickly the tariffs will take effect.
Who Will Be Hit the Hardest by New Auto Tariffs?
Analysts say the impact could be widespread, potentially affecting vehicles and parts from key U.S. trading partners: Japan, Germany, South Korea, Mexico, and Canada. This could disrupt production for U.S. automakers who rely on global supply chains, especially under the USMCA trade agreement.
Tariffs on Canadian, Mexican, and Chinese auto goods could raise the cost to build a crossover by around $4,000, while a U.S.-made electric vehicle could become $12,000 more expensive, according to a recent analysis.
Vehicle Tariff Checker
Check if tariffs might affect the price of your next car purchase
What It Means for Car Buyers in 2025
Whether you’re eyeing a new Honda, BMW, Hyundai, or even a Jeep or Ford, today’s announcement could raise prices across the board. Even U.S.-assembled cars aren’t immune if they rely on imported parts or manufacturing partnerships abroad. However, some cars will be impacted more severely than others.
Auto prices are already sky-high in 2025. Industry analysts also expect auto insurance rates to rise due to tariffs in 2025.
President Trump argues the tariffs will strengthen the U.S. auto industry by pushing production stateside. On Monday, he touted Hyundai’s $21 billion U.S. expansion as proof that his approach is working. Still, the global auto market is deeply interconnected, and relocating manufacturing isn’t something that happens overnight.
Automakers — including executives from Ford and Stellantis — have warned the administration that sudden tariffs could stall production, threaten U.S. jobs, and create more uncertainty in an already fragile supply chain.
Stay Informed
Whether you’re planning to buy new, lease, or even wait it out, it’s more important than ever to know how these tariffs could affect the price of the vehicle you’re considering. Even the used car market will see impacts as some new car buyers shift their buying plans.
For car shoppers, it’s time to take a closer look at what’s coming next. Use our free Auto Tariff Calculator to find out if the car you’re shopping for is likely to be hit by these new tariffs.
We’re keeping a close eye on what comes next — and we’ll update you as the situation unfolds. In the meantime, make sure you go into your next car deal with eyes wide open.
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