February 12, 2025

Americans shopping for cars may need to fork over thousands more if President Donald Trump's proposed tariffs go into effect, according to data from investment bank Benchmark Co.

Analyst Cody Acree estimated that the average sticker price would rise about $5,790, based on the impact of the currently paused 25% levies on cars and components from Mexico and Canada. That would raise the cost of an average new car above $54,500, or nearly 12% higher than in 2024.

"We believe the Auto sector is the most exposed to the risks of increased tariffs," Acree wrote in a note to clients, "given its sheer size of trade dollars, the complexity of the intertwined supply and manufacturing channel that has been cultivated over decades, and the sheer number of our companies that participate in support of this key consumer industry."

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