DETROIT – President Trump’s 25% tariffs on imported cars took effect on April 3. The import tax has already triggered big moves by automakers, from layoffs to pauses in car shipments to delayed price hikes.
As a result, industry analysts expect consumers to see higher car prices, and some buyers have been rushing to the dealerships in anticipation of future sticker shock.
Starting May 3, the tariff will also apply to imported car parts, such as engines and transmissions, which could add to the cost of cars assembled in the U.S. Kelley Blue Book lead editor Sean Tucker said in the video interview that consumers may not see higher prices in April, since automakers and auto dealers stocked up on vehicles in March.
But depending on how long the tariffs last, by June, if not sooner, consumers could see vehicle prices surge from $3,000 to more than $15,000 depending on the average selling price of each vehicle.
He also urges consumers not to panic and buy a $50,000 vehicle that really can’t afford now but hope to save the tariff fees.
To check out current vehicle prices, click on www.kbb.com.
To find out more, watch this video below.
