- The new tariffs on Canadian and Mexican imports could drive up costs by 25 percent.
- Analysts predict increases from $4,000 for small cars to $12,000 for electric vehicles.
- Even US-assembled cars may see cost increases due to parts sourced from abroad.
If you’re planning to buy a new car in the near future, prepare to pay more. A lot more. The 25% tariffs on imports from Canada and Mexico, announced by President Donald Trump this week, are set to make your next car purchase significantly more expensive. These tariffs could hit your wallet with the force of a speeding Dodge Ram.
More: BMW Is America’s Top Vehicle Exporter By Value
Automotive manufacturing isn’t a simple affair. It’s a tangled web of parts crossing borders, getting swapped around, and occasionally bumping into a customs agent. This complex supply chain means car parts travel between the USA, Canada, and Mexico multiple times before the final vehicle is assembled. With tariffs now slapped on parts and vehicles crossing those borders, manufacturers are scrambling to adjust.
Who Pays The Tariffs? (Hint: It’s You)
As a result, several popular models will see production costs rise. Contrary to what you might have heard, tariffs are not paid by manufacturers or exporting countries. Instead, they are essentially a tax on imported goods, and that cost is passed down the supply chain to consumers, meaning you’ll end up paying that tariff at the dealership. Even vehicles assembled in the U.S. won’t be safe, as many of their parts come from Canada and Mexico, so they’re subject to the same tariffs.
Which Cars Are Impacted?
According to government data, 34 models are being imported from Canada or Mexico, but that list is actually longer. After some digging and gathering data from multiple sources, including reports from manufacturers, Business Insider, Detroit Press, and the NHTSA, we’ve compiled a comprehensive list of affected vehicles. Keep in mind, we’re still gathering info—so if you notice something missing or spot an error, drop a comment, and we’ll investigate and update the list.
Vehicles Manufactured In Canada And Mexico
BMW – 42.7% of its US lineup is made domestically
BMW 2-Series Coupe/Convertible (Mexico)
BMW M2 Coupe (Mexico)
BMW 3-Series Sedan (Mexico)
Ford – 78.3% of its US lineup is made domestically
Ford Bronco Sport (Mexico)
Ford Maverick (Mexico)
Ford Mustang Mach-E (Mexico)
Ford Mustang GTD (Canada)
General Motors – 47.3% of its US lineup is made domestically
Chevrolet Blazer (Mexico)
Chevrolet Blazer EV (Mexico)
Chevrolet Equinox (Mexico)
Chevrolet Equinox EV (Mexico)
Chevrolet Silverado (Mexico)
Chevrolet Silverado HD (Canada)
GMC Sierra (Mexico)
GMC Terrain (Mexico)
Honda – 58.9% of its US lineup is made domestically
Honda CR-V Hybrid (Canada)
Honda Civic Sedan (Canada)
Honda HR-V (Mexico)
Honda Prologue (Mexico)
Acura ADX (Mexico)
Hyundai Group- 38.4% of its US lineup is made domestically
Hyundai Tucson (Mexico)
Hyundai Santa Fe (a few, but not all, are imported from Mexico)
Kia K4 (Mexico)
Mazda – 20.3% of its US lineup is made domestically
Mazda CX-30 (Mexico)
Mazda3 (Mexico)
Mercedes-Benz – 36.5% of its US lineup is made domestically
Mercedes-Benz GLB (Mexico)
Nissan – 45.6% of its US lineup is made domestically
Infiniti QX50 (Mexico)
Infiniti QX55 (Mexico)
Nissan Sentra (Mexico)
Nissan Kicks (Mexico)
Nissan Versa (Mexico)
Stellantis – 68.2% of its US lineup is made domestically
Dodge Charger Daytona (Canada)
Ram 2500 (Mexico)
Ram 3500 (Mexico)
Ram 4500 (Mexico)
Ram 5500 (Mexico)
Ram ProMaster (Mexico)
Jeep Compass (Mexico)
Chrysler Pacifica (Canada)
Toyota – 44.1% of its US lineup is made domestically
Toyota Tacoma (Mexico)
Toyota RAV4/RAV4 Hybrid (Canada)
Lexus NX (Canada)
Lexus RX (Canada)
VW Group – 27.8% of its US lineup is made domestically
Audi Q5/SQ5 (Mexico)
VW Jetta (Mexico)
VW Taos (Mexico)
VW Tiguan (Mexico)
Brace for Price Hikes—Big Ones
The new tariffs won’t just tack on a few extra bucks to the sticker price. According to Reuters, industry insiders are warning of “drastic price hikes.” John Bozzella, president of the International Organization of Motor Vehicle Manufacturers (OICA), a trade group representing nearly all major automakers, said some models could see increases of up to 25%, with the “negative impact on vehicle prices and availability” felt almost immediately.
More: Trump’s Tariffs Could Make Your Car Insurance Even More Expensive In 2025
Bozzella also warned: “You just can’t relocate automotive production and the supply chain overnight. That’s the challenge and the dilemma: auto tariffs in North America could end up increasing costs on consumers before jobs come back to the country.”
Parts Will Get More Expensive Too
And it’s not only entire cars that are being imported from America’s neighbors, but crucially, millions of auto parts as well. Even vehicles assembled in the U.S. will feel the sting, as parts from Canada and Mexico are subject to the tariffs.
An analysis by the Anderson Economic Group estimates that smaller crossovers could see price hikes of at least $4,000, larger SUVs and trucks could jump by $9,000. Electric vehicles, however, are poised to be hit the hardest, with average price increases potentially reaching as much as $12,000.
Automakers Sound the Alarm
Not surprisingly, automakers aren’t exactly thrilled. Stellantis, the parent company of Chrysler, Dodge, Jeep, and Ram, sent a letter to its dealer network warning of the “cost burden” that these tariffs will place on customers. They argue that the added expenses would put the Chrysler, Dodge, Jeep, and Ram brands at “a competitive disadvantage versus Korean, Japanese and European importers.”
Ford’s CEO, Jim Farley, took it a step further, suggesting that the tariffs could “blow a hole” in the U.S. automotive industry. And if that wasn’t enough, the American International Automobile Dealers Association (AIADA) has already noted higher vehicle and parts prices, as well as rising interest rates.
More: President Trump Is Planning 25% Tariffs Across The EU, Including Cars
On the contrary, the United Auto Workers had positive things to say about the newly introduced tariffs and the next round which is expected to be imposed next month. UAW praised President Donald Trump for taking “aggressive action on ending the free trade disaster that has dropped like a bomb on the working class”.
On the other side of the coin, the United Auto Workers (UAW) is all in on the tariff move, praising Trump for taking an “aggressive action on ending the free trade disaster that has dropped like a bomb on the working class”. A slightly more optimistic (but still very messy) take on the situation.
Production Could Drop by a Third
CNBC reports that the tariffs could have a major impact on North American vehicle production, potentially slashing output by a third. A study by S&P Global Mobility predicts a shortfall of 20,000 units per day, dropping total North American output from 63,000 to 43,000 vehicles daily.
Right now, 65% of North American vehicle production takes place in the USA., 27% in Mexico, and 8% in Canada. While the impact will vary depending on the automaker, analysts predict that these tariffs could lead to layoffs if they’re not lifted or adjusted. So, keep an eye on your vehicle production timeline, things might slow down faster than you’d expect.
