Trump's 25% Auto Tariffs Could Skyrocket Car Prices by $4,500 to $15,000, Warn Wall Street Analysts

The Looming Threat of Trump’s Auto Tariffs

Wall Street analysts are sounding the alarm: Former President Donald Trump’s proposed 25% tariffs on imported vehicles could force American consumers to pay thousands more for cars. According to recent reports, price hikes could range from $4,500 to $15,000 per vehicle, with domestic manufacturers like Ford and Chevy bearing the brunt of the impact.

The Staggering Price Hikes Predicted by Top Analysts

• Guggenheim’s Ronald Jewsikow: Predicts a $6,000–$7,000 increase per car, citing higher production costs for automakers reliant on global supply chains.
• Goldman Sachs' Mark Delaney: Warns of the most extreme scenario, with prices rising by $5,000–$15,000, particularly for luxury and electric vehicles.
• Bank of America: Estimates a minimum $4,500 price jump, emphasizing the strain on middle-class buyers.

Tesla Emerges as an Unlikely Winner

While most automakers brace for turbulence, analysts from Bernstein and Barclays note that Tesla’s vertically integrated supply chain could shield it from the worst effects. Companies like Ford, Chevy, and Jeep, which depend heavily on overseas parts, face far greater risks.

What This Means for American Consumers

If implemented, these tariffs could reshape the auto industry overnight. Budget-conscious buyers may delay purchases, while manufacturers might accelerate shifts to local production—a costly transition likely to further inflate prices. For now, experts urge caution as policymakers weigh the economic consequences.

Source: CNBC