Car prices will rise, but do the definitions bear completely?

The auto industry is preparing to raise prices from President Donald Trump’s tariff Set to become the effect of this week. The important question The consumers ask is: How much will they pay for a vehicle?

The answer is not simple, according to Bianyan Modi, the executive editor of Autotrader. Moody explained the effects of definitions on both local and international markets more complicated than consumers.

No one, just because the United States imposes a tariff on all imported cars that does not mean that the cost of locally manufactured cars will remain the same while the prices of foreign cars rise. In addition, there will be no uniform increase in all areas.

“It is not logical to say that this car was built in the United States, and there is no increase in prices. This car was built outside the price increase of $ 5,000. This does not make sense from the point of view of competitive analysis,” Modi said.

Trump, who looks at customs duties as a way to bring tax revenues for proposed tax discounts while stimulating local manufacturing activation, plans to impose a 25 % tariff. On all imported passengers. This includes sedans, SUVs, transit operations, mini van, charging trucks and light trucks. It will also collide with major auto parts such as engines, transportation, power generation parts and electrical components, although there are “operations to expand customs tariffs on additional parts if necessary.”

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It is not only the rise of the MOODY project in which the prices will rise, but the increase is expected to affect in a way that is not appropriate to the high -end models, as the most expensive vehicles are likely to suffer from a greater rise. For example, Moody explained that the car is in the price range from 20 to 25,000 dollars cannot support a significant increase in prices, while a car of about $ 90,000 can.

Deutsche Bank Edison Yu estimated that consumers can see an increase in prices from 5 % to 10 % on cars, although this may decrease in the lower end if there is an exemption from the United States Convention and Kanta, or higher if there is no.

The administration said that the automotive importers under the United States, Mexico and Konda agreement are able to confirm the amount of their cars being manufactured in the United States. The administration said that the systems will be placed in place so that only 25 % tax applies to the parts of the car that is not made in the United States.

“It is not clear if this is 5 % to 10 %, it increases 100 % strikes for the consumer,” said. “But my basic issue will be the majority of that.”

Yu admitted that “he could be very painful in the short term.” However, like Moody, it is believed that there will be a defect and some brands will become more difficult. Hyundai, for example, will get the most difficult. This according to their analysis was divided by the car and the area.

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Yu explained that there is not a lot of margin to work with him in the supply chain and that car manufacturers will do their best to not absorb costs in costs.

Although the customs tariff is 25 % prominent, “it is reasonable to expect vehicle prices to rise,” the exacerbation of challenges in “an industry is already struggling with continuous concerns of the ability to bear costs,” according to Jessica Caldwell, Edmunds president in sight.

The average price of the transaction for new vehicles was $ 47373 and the average retail price for the new vehicles was 49350 dollars, according to EDMUNDS February. The average price for the vehicles used was $ 25,005.

The administration said it uses definitions Cars and auto parts To protect and enhance the American auto sector.

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The administration said that foreign auto industries, which are enhanced by unfair benefits and aggressive industrial policies, have expanded. At the same time, she said that American production was stagnant. In 2024, Americans bought nearly 16 million cars, including SUVs and light trucks, but 50 % of them were imports, the administration said.

Yu realized that about 46 % of US car sales are imported and that there is a desire to reduce this number, but the only way to do this is “structural change”.

He said: “What ends with it is the American auto industry that is integrated vertically and more tense in the United States and we know somewhat already because, mainly, the Chinese auto industry like that,” the cost reduction is much more. “

Regardless, fear and uncertainty about definitions have already paid a handful of consumers to car dealers. Tom Molly, the owner of celebrity cars in New Jersey, said sales have increased by 15 % since last month.

Meanwhile, Deutsche Bank expects April and May’s sales “to be strong as consumers buy before prices rise,” according to a research note published on Sunday. They expect weakness in the second half of the year “as soon as the high costs begin to flow.”