US car buyers face USD 1,760 higher prices due to tariffs.
US car buyers are expected to face an average price increase of USD 1,760 per vehicle due to USD 30 billion in tariffs introduced under President Donald Trump.
Automakers are passing about 80% of the tariff costs on to consumers.
General Motors and Ford estimate tariff impacts of USD 5 billion and USD 2.5 billion this year. Higher prices are expected to reduce US vehicle sales by around 1 million units over the next three years.
Despite the short-term decline, US auto sales are projected to reach 17 million in 2030 as tariffs are gradually reduced. The 25% tariff on cars could fall to 7.5%, and tariffs on parts to 5%, especially for products covered by the US-Mexico-Canada Agreement.
Electric vehicle sales in the US are now forecast to make up only 17% of the market by 2030, down from a previous estimate of 31%, due to cuts in government incentives. Gasoline vehicles are expected to account for 50% of sales, hybrids 27%, and plug-in hybrids 6%.
The shift in policy may reduce the global competitiveness of US automakers and increase reliance on foreign electric vehicle technologies.
