Uncertainty surrounds the impact of President Trump’s tariff war on the U.S. auto market, with a 25% tax on imported vehicles and vehicle parts from Canada and Mexico set to take effect April 2. Car shoppers are torn between buying now or risking higher prices later.
The potential price increase could be anywhere from $3,500 to $10,000 for new cars, depending on the source of the parts, estimates suggest. Automakers are struggling to predict how the tariffs will affect their businesses.
“It’s a spreadsheet nightmare,” said Jessica Caldwell, head of insights at Edmunds. “Many vehicles are assembled in the US but sourced from Mexico and Canada.”
Caldwell warns that buyers should prepare for higher costs, not just when buying new cars but also for repairs and maintenance. She advises those looking to buy a new vehicle in the next few months to do so sooner rather than later.
The impact of the tariffs is uncertain, with some automakers saying they don’t know how much it will cost them. Caldwell believes buyer incentives and discounts will be among the first to disappear.
Source: https://www.cbsnews.com/news/u-s-auto-market-car-prices-uncertainty-reigns-trump-tariffs