WHAT TO EXPECT AS TARIFFS HEAD FOR YOUR DRIVEWAY

Higher vehicle prices and delayed repairs are among the potential effects.

- BY EMMA PATCH

In early April, 25% tariffs took effect on imported automobiles. What do you expect these tariffs to do to car prices? Tariffs could certainly make car prices go up. But we don’t know by exactly how much, because it could vary from manufacturer to manufacturer. And within one manufacturer, it will vary from car model to car model. We estimate that the price increase on many cars could be anywhere from 3% to 25%. We expect that 40% of cars with prices of less than $40,000 will face a direct impact, meaning there’d be no way to avoid a price increase on 40% of cars with prices under $40,000.

Will this affect only cars built outside the U.S.? Most cars today are full of parts that have come from outside the U.S. So even if a vehicle is assembled here, other countries may produce the parts, which are also subject to tariffs.