Car Shopping? This Expert Suggests You ‘Buy It Right Away’ Before Trump Tariffs Lift Prices

Americans shopping for cars this year should expect the latest tariffs to push prices higher, often by thousands of dollars, according to a new analysis.

A round of 25% Trump administration tariffs on imported autos took effect today, part of a broad rework of US trade policy by the president. Consulting firm Anderson Economic Group in a new analysts estimated that the new tariffs could cost Americans $30 billion in their first year.

“If you are in the market for a new car and you find one you like, my advice is to buy it right away,” Anderson CEO Patrick Anderson said. “If you have a used car you rely upon, my advice is to make sure it is well maintained as you are likely to use it for a while longer than you had earlier planned.”

Anderson in its analysis examined the effects of tariffs on the price of cars from GM (GM), Ford (F), Toyota, Honda, Tesla (TSLA), and Chrysler, as well as BMW, Kia, and Mercedes-Benz vehicles assembled in the U.S. Some of their estimates:

• Certain small crossovers, sedans and mid-sized SUV assembled in the U.S. will be hit with tariff costs between $2,500 and $4,500. Examples of cars in this group include the Honda Civic and Odyssey, Chevy Malibu, VW Jetta, and Ford Explorer.
• Mid-sized vehicles, including a passenger van, SUV, and some pickup trucks, will see an estimated tariff impact of $5,000 to $8,500. Some Jeep, Ram, and Toyota truck models fall here, as well as the Chrysler Pacifica and the Bronco Sport.
• Full-size and luxury SUVs and some battery-electric vehicles fell into AEG’s highest- impact category, with expected impacts above $10,000. Models in this group include the Chevy Suburban, GMC Yukon, Cadillac Escalade, BMW X5, and Ford Mustang Mach-E. Many models in this category are assembled in the U.S. with parts from Canada, Mexico, and Europe.

Smaller European-assembled vehicles could see tariff impact of $8,000 to $10,000, according to Anderson, while luxury sedans, SUVs, and sports vehicles could be hit with tariffs exceeding $20,000, according to AEG estimates. The latter category includes vehicles manufactured by Audi, BMW, Jaguar-Land Rover, Mercedes-Benz, Genesis, and Lexus.

Used cars, Anderson said, are likely to increase in value alongside newer ones.