US car buyers could face higher prices if President Donald Trump’s proposed 25% tariffs on Mexico and Canada go into effect. An estimate from Benchmark suggests that the average sticker price of a new car would rise by nearly $6,000, or around 12%, due to the impact of levies on cars and components from the two countries.
The auto industry is one of the most exposed to the risk of higher tariffs, according to the investment bank. Over 22% of finished cars and 40% of auto parts come to America from Mexico and Canada, with estimated annual exports of over $200 billion to the US.
If the proposed tariffs are implemented, Americans could see thousands more added to the cost of a new car. Ford Motor CEO Jim Farley stated that Trump’s proposal has created headaches due to increased costs and chaos. He hopes for an administration that can make the US auto industry stronger and more innovative.
Source: https://www.cnbc.com/2025/02/12/mexico-canada-tariffs-could-add-6000-to-the-cost-of-a-car-by-one-estimate.html