In a bird’s-eye view, Chevrolet cars and trucks are on display at the Novato Chevrolet in Novato, California on January 28, 2025.
Justin Sullivan | Getty Images
Investment Bank Benchmark Co.
Analyst Cody Acree estimates that the average price will rise by about $5,790 based on the impact of the currently suspended 25% tax on cars and parts in Mexico and Canada. This will cost a regular new car above $54,500, or nearly 12% higher than in 2024.
“We believe that the automotive industry is most vulnerable to the risk of raising tariffs, which is its huge trade funding, the complexity of intertwined supply and manufacturing channels that have been cultivated for decades,” Acree wrote in a note to customers. , and the huge number of companies we are involved in supporting this major consumer industry.”
trump card Shoot Tariffs on Canada and Mexico at 25% in early February, briefly rocking the market, but later suspended their duties for a month Tentative Agreement With Prime Minister Justin Trudeau and President Claudia Sheinbaum.
Now, consumers and investors want to know what the tariffs will take, or whether they will take effect. Benchmark calculates what a 25% tax means for the purchasing power of the average American in a popular large purchase.
Benchmark estimates that cars are more expensive, with more than 22% of sold cars sold in the U.S. last year. On top of that, the company says about 40% of the parts used in the vehicle also come from its North American partners.
Last year, exports to the United States were worth more than $200 billion. Specifically, Acree found that in addition to the 2024 parts, Mexico provided the United States with $95 billion in finished cars. Canada offers finished cars worth more than $36 billion and nearly $16 billion in components.
exist Industry Activities This week, Ford electric motor CEO Jim Farley Steel and aluminum importshas created headaches.
“President Trump has talked a lot about making our automotive industry stronger, bringing more production here, and innovation in the United States, and if his administration can achieve that, it will be…most One of the achievements of signatures,” Farley said. Wolf Research Investment Conference. “What we’ve seen so far is a lot of costs and a lot of confusion.”
– Michael Wayland of CNBC contributed to the report.
