The car prices will rise, but are the fares guilty or not the guilty?

Automobile industry attracts to rising prices President Donald Trump’s tariffs set to take effect this week. A significant question consumers are interested in: how much else will they pay for the vehicle?

The answer is not simple, according to Brian Moody, the executive editor of Autotrader. Moody explained that the impact of tariffs on both domestic and international markets is more confusing than consumers can realize.

For the first, just because the US imposes tariffs on all imported cars, it does not mean that the cost of car produced in the country will remain the same, and the prices of the car made on foreign ones are rising. In addition, Moody explained a homogeneous increase, explained Moody.

“It just doesn’t make sense to say that this car was built in the US, an increase in prices. This car was built at a $ 5,000 price increase. It just doesn’t make sense in terms of competitive analysis,” Moody said.

Trump, which views tariffs as a way to raise tax revenues for the proposed tax reductions, while intensifying domestic production plans to impose 25% tariff On all imported cars. These include Seda, SUV, crossovers, minibuses, freight minibuses and light trucks. It will also get into key car details such as engines, transmission, parts of the power unit and electrical components, although if necessary there are “processes to expand the tariffs for additional details.”

Tariff on Imports by 25% Trump: This is the most affected manufacturers

Tuned vehicles are for sale in the dealership in Kolma, California. (David Paul Morris/Bloomberg via Getty Images/File)

The Moody Project project will not only increase, but also suggests that the increase will affect the higher -end models, and more expensive vehicles are likely to experience an even larger device. For example, Moody explained that the car of $ 20,000 to $ 25,000 could not support a significant increase in prices, while the car at about $ 90,000 could.

Deutsche Bank Edison Yu analyst estimated that consumers can increase the cost by 5% to 10% on cars, although it may fall to the lower end if the US-mexico-konad is released, or higher if that’s wrong.

The administration said the importers of the cars under the US-Mexico Cape agreement, which can confirm what part of their cars in the United States will be released. The systems will be created so that 25% collection is applied only to car parts that are not made in the US, the administration noted.

Ford Cars are exhibited in the dealership in Orlando Park, Il. (Daniel Aker/Bloomberg via Getty Images/File)

“It is unclear whether it is increasing by 5% to 10% of the consumer by 100%,” Yu. “But my basic case would be a majority.”

Y. acknowledged that “could be very painful in the near future.” However, like Moody, he thinks there will be an imbalance and that some brands will receive much stronger. For example, Hyundai will be the most violent. This is according to their analysis, destroyed by the vehicle and the region.

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Yu explained that there is no margin in the supply chain, and that the automakers would try not to monitor not to absorb costs.

Although, when tariffs set by 25%”reasonably calculate what the prices for vehicles will rise”, “worsening problems in the” industry that is already fighting with accessibility “, according to Jessica Kaldwell, the head of the Edmunds’s understanding claimed that.

The average transaction price for new vehicles was $ 47,373, and the average proposed retail price for new vehicles was $ 49 350, according to EDMUDS prices. The average price of transactions for used vehicles was $ 25,005.

Cars are submitted for sale in the offline dealers in Fremonia, California. (David Paul Morris/Bloomberg via Getty Images/File)

The administration stated that she was using tariffs on Cars and car details to protect and strengthen the US Automobile Sector.

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The administration stated that foreign car industries, which are supported by unfair subsidies and aggressive industrial policy, has expanded. At the same time, it stated that the US production stagnated. In 2024, the Americans purchased about 16 million cars, including SUV and light trucks, but 50% of them were imports, the administration notes.

Y. acknowledged that about 46% of car sales in the US are imported and that there is a desire to reduce this figure, but the only way to do is “make structural changes”.

“The fact that you are in the end is an American automotive industry that is much more vertically integrated and much more contained in the US, and we know what it looks like because it is, in fact, Chinese car industry,” he said, adding that the end should “be withdrawn by a local leash.

Despite the fear and uncertainty around the tariffs have already led several consumers to car dealers. New Jersey celebrity owner Tom Maoli said sales have grown by 15% since last month.

Meanwhile, Deutsche Bank analysts expect sales in April and May “are actually reliable as consumers buy ahead of the price,” the research note said on Sunday. They suggest weakness in the second half of the year, “when higher costs start passing through.”