Consumers shopping for a new car in 2025 are being warned to buckle up for higher prices once President-elect Donald Trump takes office next month as potential impacts from his trade policies are beginning to come into focus.
Trump has vowed to slap heavy tariffs on all foreign-made goods once he returns to the White House next month, and auto analysts and dealerships are weighing in on how new taxes on foreign car companies would affect a buyer’s bottom line.
"Certainly, if they did come into effect, you'd see an increase in the price of new cars, which obviously is gonna make it more expensive for the consumer, which is not a good thing," George Glassman, of the Glassman Automotive Group, told Fox 2 Detroit. "In addition to that, it would negatively impact the automakers and the broader economy."
Glassman, who sells Japanese and South Korean model vehicles – including Hyundai, Kia, Mitsubishi and Subaru – is one of many dealers across the country bracing for the impact of Trump’s new tariff threats.
ALSO READ: Trump is already walking back on his promises
But it’s not just car dealers. Auto analysts are also measuring the effect a possible tax on imported goods would have on car buyers, with some arguing the increase in prices would eventually get pushed down to the consumer, the news station added.
"There are different estimates out there," Jan Griffiths, a former auto supply chain executive, told Fox 2 Detroit. "The most recent one I saw from the Wells Fargo analyst predicted that the impact for component parts – tariffs on vehicles – could be anywhere between $600 and $2,500 per vehicle.”
Griffiths added that Trump’s tariffs would serve as a temporary solution to a bigger problem, the outlet noted.
"The real issue is that the US automotive industry is not competitive as compared to the Chinese OEMs (original equipment manufacturer),” she added. “We’re just not, so tariffs are simply just buying some time.”
Still, some view Trump’s threats as nothing more than “a bargaining tool,” and don’t think any new steep tariffs will come from it.
