Affordable compact cars could be first to see rising prices from tariffs

[Zorro]

The Trump administration’s 25 percent tariffs are likely to lift costs for virtually every car, analysts say, but popular brands like Toyota, Honda and Subaru are among the most vulnerable.

Car costs, which have already spiked 20 percent since the pandemic, are expected to get another jolt in coming weeks, with the Trump administration’s newest proposed tariffs likely to add thousands of dollars to manufacturers’ sticker prices.

President Donald Trump on Wednesday announced 25 percent tariffs on imported vehicles and auto parts beginning April 3, a move meant to “protect America’s automobile industry” by encouraging more domestic production. About half of the cars sold in the United States last year were imported, and virtually all contained at least some foreign-made parts.

It’s unclear exactly how and when prices will start ticking up, but analysts say brands such as Lexus, Toyota, Honda and Subaru are likely to be among the first to face higher costs because they have the smallest stockpiles of cars already in the U.S.

“We’re going to start seeing prices rise almost immediately,” said Charlie Chesbrough, senior economist at Cox Automotive, who expects an average markup of $6,000 per car. “Some of the most affordable vehicles — compact SUVs, for example — are made outside the country, so they’re going to be the most vulnerable.”

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And...Trump and the Republicans will somehow find a way to blame Biden and the Democrats...