In air terms, cars and trucks Chevrolet were exhibited in Novato Chevrolet on January 28. January 2025 in Novat, California.
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Americans who buy cars may need to wear more than thousands if the proposed tariff of President Donald Trump enters into force, according to Investment Bank Benchmark Co.
The Cody Acree analyst estimated that the average price of the label would increase about $ 5,790, based on the influence of the currently paused 25% of the levies on cars and components from Mexico and Canada. This would increase the costs of the average new car above $ 54,500, or almost 12% more than in 2024.
“We believe that the car -sector is most exposed to the risks of increased tariffs,” ACree wrote in clients, “Given the pure size of trade dollars, the complexity of intertwined supply and production that is processed for over a decade, and a pure number of our companies participating in Support to this key consumer industry. “
Trump dazed 25% of tariffs to Canada and Mexico in early February, briefly swinging markets, but later suspended his duties for a month after he arrived trial agreements with Prime Minister Justin Trudeau and President Claudia Sheinbaum.
Now consumers and investors are equally wondering which tariffs will be in the form or will take effect at all. Benchmark calculated what 25% of the levy would mean for the average buying power of Americans at the popular buying of big tickets.
Benchmark estimated higher car costs based on more than 22% of finished cars sold to the United States coming from Mexico and Canada last year. On top of that, the company said that about 40% of parts used in vehicles also come to America from its North American partners.
This amounts to more than $ 200 billion to America last year. In particular, Acree found that Mexico had brought $ 95 billion in the US completed cars, except $ 68 billion in parts in 2024. Canada has provided more than $ 36 billion in finished cars and almost $ 16 billion in components.
During an industrial event This week, Ford engine Executive Director Jim Farley said Trump’s proposed tariffs in Canada and Mexico, in combination with 25% fees on Imports of steel and aluminumThey created a headache.
“President Trump has talked a lot about the reinforcement of our American auto industry, bringing more production here, more innovations in the US, and if his administration can achieve this, it would be one of … the most beloved achievements,” Farley said during A Wolfe Research Investment Conference. “So far, what we see is a lot of costs and a lot of chaos.”
– CNBC -ov Michael Wayland contributed to this report.
