Automakers say Trump tariffs on Canada and Mexico will cause U.S. car prices to rise [Video]

President Trump’s tariffs on U.S. imports from Canada and Mexico could lead to higher domestic vehicle prices and dent profit margins for automakers, according to industry analysts.

The average $25,000 price of a car imported from Mexico or Canada could jump $6,250 if the tariffs take effect, according to an analysis by S&P Global Mobility. The automotive research firm forecasts that importers would likely pass most of any increase in their costs along to consumers. 

• What are tariffs? Here’s everything you need to know about the import duties.

“The automotive industry is at a critical juncture,” Michael Robinet, vice president of forecasting at S&P Global Mobility said in a statement. “The proposed tariffs could not only inflate vehicle prices but also disrupt production schedules, with estimates suggesting a potential 30% decrease in production for high-exposure vehicles once tariffs are enacted, even if only for the short-term.” 

After President Trump on …