Toronto, Ontario – Tariffs imposed by the Trump administration on foreign-made vehicles and parts will saddle American consumers with up to US$30 billion ($41 billion) in additional costs over the next year, according to a new report from the Anderson Economic Group.
AEG estimates price hikes of US$2,000 to US$3,000 ($2,700 to $4,100) for models like the Toyota Camry Hybrid and Ford Explorer. More import-reliant models — such as the Chrysler Pacifica and BMW X3 — could see increases between US$4,000 and US$8,000 $5,400 to $10,800).
Luxury and electric vehicles including the Mercedes G-Wagon and Ford Mach-E are expected to be hit hardest, with sticker price increases exceeding US$10,000 (more than $13,500).
The report was produced after the U.S. Government announced it would not apply the tariffs to auto parts imported into the U.S. from Canada.
"The adjustments provide significant and beneficial softening of the cost impact of these tariffs, at least for US-assembled vehicles," said the study’s lead author, Patrick L. Anderson. "However, the cost is still substantial for most American cars and trucks."
While the tariffs aim to stimulate domestic production, they risk disrupting North America’s highly integrated auto supply chain. General Motors has projected up to US$5 billion in additional costs.
