President Donald Trump’s new 25% tariffs on imports from Mexico and Canada could lead to significant increases in car prices, according to a recent analysis by the Anderson Economic Group.
The study indicates that manufacturing costs for various vehicle types could rise sharply: crossover utility vehicles might see a $4,000 increase, large SUVs could rise by about $9,000, and pickup trucks may experience an increase of approximately $8,000.
Electric vehicles (EVs) would be particularly affected, with potential cost increases exceeding $12,000.
Additionally, vehicles from Europe and Asia could face an extra $800 to $1,700 in costs without tariff exclusions.
The analysis also warns that retaliatory tariffs from Canada and Mexico could further escalate prices as both countries respond to the U.S. tariffs.
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