What Cars are Most and Least Affected by the 25% Tariffs?

Welcome to the latest automotive apocalypse, brought to you by a new 25% tariff on imported vehicles and car parts. In this blog post, adapted from a recent episode of The Straight Shift podcast, we’re unpacking what these tariffs actually mean for you, your wallet, and the entire car industry. Spoiler alert: it’s not great.

What Are the New Tariffs?

As of April 3, 2025, the U.S. government has imposed a 25% tariff on imported passenger vehicles (cars, SUVs, crossovers, light trucks, and minivans) as well as major components like engines, transmissions, powertrain systems, and electrical parts. Thanks to a delightful little executive order, automakers and suppliers now face massive added costs — and you better believe those costs will get passed right down to consumers.

There is a provision for vehicles imported under the USMCA (United States-Mexico-Canada Agreement), but that just means manufacturers have to figure out what percentage of a vehicle is truly "American made." And with global supply chains crisscrossing multiple countries, good luck with that.

Why This Is a Big Deal

Here’s the harsh reality:

• Up to 46% of all vehicles sold in the U.S. are imported.

• Tariffs could raise car prices by $5,000 to $15,000 per vehicle.

• That’s on top of the 30% price increase we’ve seen since 2019.

• The average price of a new car in the U.S. is already over $48,000.

  
  

In other words, this tariff bombshell could price millions of Americans out of the new car market — especially buyers looking at luxury models or entry-level vehicles made in Mexico or Asia.

Who Gets Hit the Hardest?

🚙 Luxury Brands

Lexus, Audi, Porsche, Alfa Romeo, Land Rover, and Volvo all import most (if not all) of their vehicles. Mercedes and BMW will take a hit too, though both have U.S. factories that soften the blow.

🚗 Entry-Level Vehicles

Ironically, many of the most affordable models — the kind people on tight budgets rely on — are built in Mexico. That includes popular trims from Ford (Maverick, Bronco Sport, Mach-E), Toyota, Hyundai, Kia, and more.

🚘 U.S. Automakers

Ford, GM, and Stellantis (Jeep, Dodge, Ram) rely heavily on North American supply chains. Vehicles and parts cross U.S. borders multiple times during production, and each crossing now triggers a tariff.

It's Complicated: The Supply Chain Mess

No car is 100% made in one country. Engines alone have hundreds of parts sourced globally. If just one gasket comes from Germany, that part is subject to a 25% tariff. Now multiply that across thousands of parts in one vehicle. Yeah, the math sucks.

Each time a part or subassembly crosses the U.S. border, it could be taxed again. This means the final cost could get tariffed multiple times before the car ever hits the dealership.

And let's not forget the existing 25% steel and aluminum tariffs, with copper possibly next. All three are vital in auto manufacturing.

What About U.S. Car Manufacturing Plants?

Good news: many automakers have already been investing in U.S. manufacturing. Hyundai's new $12.6 billion Meta plant in Georgia will build up to 500,000 EVs annually. BMW, Honda, Toyota, Subaru, and others have longstanding U.S. facilities.

Bad news: even U.S.-built cars rely on global parts. So even American-made vehicles won't be immune to price hikes.

What Happens Next?

Prices are already climbing. Subaru has openly stated they can’t guarantee MSRP on new orders placed before April 3. Other automakers are still scrambling to calculate how deeply they’ll be affected.

Used car prices? Yep, they’re going up too.

Parts and maintenance? Also getting more expensive, which means keeping your current car running will cost more than ever.

And remember those supply chain disruptions during the pandemic? Small parts suppliers may go out of business if they can't absorb tariff costs, potentially triggering new shortages.

So What Can You Do?

🔔 Stay informed. I launched The Straight Shift newsletter to share breaking industry news that you won’t hear from mainstream media. It’ll include car buying tips, dealership alerts, maintenance advice, and real-time tariff updates. Sign up at TheCarChick.com

🎓 Check out my course. If you’re in the market for a car, you need to be equipped with the right knowledge to avoid getting screwed. My online course, The No BS Guide to Buying a Car, is designed to help you do just that — even during economic chaos. Learn more at CarBuyingCourse.com

🔎 Watch the brands. Not all cars will be hit equally. Tesla, Rivian, Lucid, Acura, Honda, and some Subarus will fare better due to their U.S. production. But many others will see sharp increases.

🚫 Avoid panic buying. The industry is in flux. Some prices may spike now, others later. Don't rush into a bad deal out of fear. Let the market stabilize and stay educated.

Final Thoughts

The 25% auto tariffs are not just an inconvenience — they’re a seismic shift in how vehicles are priced, produced, and purchased in the U.S. Whether you’re in the market now or just trying to keep your ride on the road, this will affect you.

Stay calm. Stay smart. And stay subscribed. We’re going to get through this together — one car at a time.