Trump’s Mexico and Canada Tariffs Could Add Nearly $ 6,000 to the average cost of a car, by one estimate

American Shopping for Cars May Need to Fork Over Thousands More Thousn Donald Trump’s Proposed Tariffs Go Into Effect, According to Data from Investment Banks Banchmark Co.

Analyst Cody Acree Estimated that Average Sticker Price Today about $ 5,790, based on the impact of the currently paused 25% Leviies 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 risk of increasing tariffs,” Acree wrote in a note to clients, “Given its sheer size of trade dollars, the complexity of the complexity and Channel that has been grove over decades , And the Sheer Number of Our Companies that Participate in Support of this Key Consumer Industry. “

Trump slapped 25% tarifs on canada and mexico at the start of February, briefly Rocking markets, but later suspended the duties for one month after Reaching Tentative Agreements With Prime Minister justin Trudeau and President Claudia Sheinbaum.

Now, Consures and Investors Alike Wonder What Form Tarifs will take, or if they’ll go into effect at all. Benchmark Calculated What 25% Levies would mean for the average American’s buying power on a popular Big-Ticket Purchase.

Benchmark’s estimated Higher costs for a car is based on more than 22% of Finished Automobiles Sold in the Us Coming from Mexico and Canada Last Year. On top of that, the firm said about 40% of parts used in vehicles also come to America from its north American partners.

That Amounts to more than $ 200 Billion Worth of Exports to America Last Year. Specifically, Acree Found That Mexico Supplied $ 95 Billion in Completed Cars to the Us, In Addition to $ 68 Billion in Parts in 2024. Canada provided more than more than more than 26 bills and NEARLY BILLING Ponents.

During an Industry Event This week, Ford Motor Ceo jim farley said trump’s proposed tarifs on canada and mexico, combined with 25% fees on Steel and aluminum importsHave created headaches.

“President Trump has talked a lot about making , “Farley said during a Wolfe Research Investment Conference. “So far what we see is a lot of cost, and a lot of chaos.”

– CNBC’s Michael Wayland Contributed to this Report.