Trump's auto tariffs could add over $30 billion to car prices, cut US sales: Report
Washington DC: Trump’s 25% tariff on auto imports could cost US consumers over $30 billion in higher car prices and reduced sales within the first full year, according to a study by consultancy firm Anderson Economic Group (AEG) released on Thursday.
While automakers may absorb some of the tariff costs initially, they are expected to shift production strategies, discontinue low-volume imported models, and eventually pass nearly all tariff-related expenses to consumers, Reuters reported, citing the study.
Trump introduced the 25% tariff last month on imported cars and light trucks, covering more than $460 billion in vehicle and auto parts imports annually, according to a Reuters analysis.
AEG CEO Patrick Anderson advised consumers to act quickly, saying, "If you are in the market for a new car and you find one you like, my advice is to buy it right away."
He also urged car owners to maintain their current vehicles, as they may need to keep them longer than expected.
The consultancy firm estimated that tariffs could add between $2,500 and $5,000 to the cost of budget cars assembled in the US, while mid-sized vehicles may see price increases of $5,000 to $8,000.
SUVs and luxury models could cost an additional $10,000 to $15,000.
For cars imported from Europe and Asia, smaller models may see a potential tariff impact of $8,000 to $10,000, while luxury, SUV, and sports models could face increases of $20,000 or more.
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