ORIGINALLY PUBLISHED IN DE MODE
Article Published on: 28TH MARÂ 2025 | www.demodemagazine.com
President Donald Trump's newly announced 25% tariffs on U.S. auto imports are expected to raise car prices, reduce model choices, and limit features for consumers, experts say. Automakers, unable to absorb such costs, will pass them on through price hikes and feature reductions.
Luxury brands like Bentley and Ferrari will transfer costs to buyers, but mainstream automakers, operating on slim 6%-8% margins, will struggle. Affordable models such as the Honda CR-V, Chevy Trax, and Subaru Forester may become less viable, impacting first-time car buyers. Analysts estimate vehicle prices will rise by $3,000 for U.S.-made cars and $6,000 for those from Canada or Mexico, with U.S. sales potentially dropping to 14.5–15 million units.
Some consumers, like Loretta Acosta of Michigan, accept the tariffs for economic benefits, while others rush to buy before price hikes. Dealers currently have ample stock, but prices may rise once inventory depletes.