If you were thinking about purchasing a new car anytime soon, it’s likely you’ll have to spend more that you originally budgeted for.
Last year it was estimated that the US auto industry sold almost 16,000,000 ‘light vehicle’ units (cars, vans, and small trucks), 3,000,000 of which were passenger cars, says Statista.
The average car in 2024 would set you back around $48,000 to buy new and, while it’s not new information that cars have been increasing in price over the years, they’re set to go up even higher.
Why? Donald Trump’s newly-imposed tariffs, of course.
Yesterday was the president’s apparent ‘Liberation Day’ which saw him impose what could be catastrophic tariffs on almost all countries across the globe.
“This is Liberation Day,” Trump said in a speech.
“We’ve been waiting for a long time, April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to ‘Make America Wealthy Again.'”
As well as imposing a 10 percent tariff on all goods coming into the US from almost all countries, Trump has honed in on the auto industry specifically and there will now be 25 percent import taxes on cars and car parts.
With this in mind, experts have forecast that car prices will increase — and by a lot.
Anderson Economic Group (AEG) have predicted that the tariffs could have a consumer impact of a staggering $30 billion for the first full year.
