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US car buyers face higher prices, less choice under Trump's tariffs

D
Mar 28, 2025 · 10:37

Major automakers can deal with President Donald Trump's tariffs on U.S. auto imports in a number of ways, but all of them lead to higher prices, fewer choices of models or limits on features for consumers, industry experts said.

Trump announced 25% tariffs on car and auto parts on Wednesday, sending global automakers' shares down and raising [fears of job losses](https://www.reuters.com/business/autos-transportation/reactions-trump-auto-tariffs-2025-03-27/) in big auto-exporting countries. He says the levies will ultimately boost production in the United States, but analysts say the immediate effect will be on automakers' choices that will hit consumers' wallets.

* Automakers may stop selling affordable models, impacting U.S. consumers
* Tariffs could add $3,000-$6,000 to vehicle costs, Cox Automotive predicts
* Automakers face tough decisions on production and supply chains

[https://www.reuters.com/business/autos-transportation/us-car-buyers-face-higher-prices-less-choice-under-trumps-tariffs-2025-03-28/](https://www.reuters.com/business/autos-transportation/us-car-buyers-face-higher-prices-less-choice-under-trumps-tariffs-2025-03-28/)


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