Trump’s tariff push: What it means for your next car

Here’s a deep dive into the auto world’s latest shake-up.

President Trump just slapped a 25% tariff on imported vehicles and parts — and he’s telling U.S. automakers not to raise prices.

The president said he “couldn’t care less” if foreign automakers raised prices in response to planned tariffs, reasoning that buyers would choose U.S.-made cars over foreign brands.

That all depends on the car. This is a big move, and it’s got everyone talking — CEOs, workers, even Senator Bernie Moreno (R-Ohio). So what’s it mean for your next car? I'll break it all down.

Picture this: Early March 2025, Trump’s on the phone with the heavy hitters — Mary Barra from General Motors, John Elkann of Stellantis, Ford’s Jim Farley.

He has a warning. Those new 25% tariffs on imported cars and parts? Swallow the cost. Don't pass it on to the buyers.

Trump's framing it as a win, saying he’s "bringing manufacturing back" and touting how he killed what he calls "Joe Biden’s electric vehicle mandate."

Also: Trust him — in the long run, those tariffs will make the industry "flourish like never before."

But here’s the flip side: Experts say we could see car prices jump by thousands. So what's actually going to happen?

Let’s get into what these tariffs actually do.

Cars assembled in the U.S. with parts from Canada or Mexico that meet the United States-Mexico-Canada Agreement deal will have no tariffs.

U.S.-built cars with key parts — like engines or transmissions — from Germany or Japan will have that 25% tariff on those components.

Cars made in Canada or Mexico will have a 25% tax on any non-U.S. parts. Say 50% of a car is U.S.-made, then the other 50% gets hit with the tariff.

Fully imported cars with zero U.S. parts will have a flat 25% tax on the whole vehicle’s value.

Here’s why it matters: 60% of drivetrains, engines, and transmissions come from overseas — Germany, Japan, China, and other countries. Only 19% are made here. Trump wants that flipped and fast.

Not every carmaker’s in the same lane. Ford’s leading the pack — 82% of its U.S.-sold cars are made domestically, though some Lincoln models come from China.

Stellantis (Chrysler, Jeep, Dodge, Ram, plus their European brands) sit at 57% U.S.-made, 39% from Canada or Mexico, and 4% elsewhere.

General Motors? Just 52% is made here, with 30% from Canada and Mexico, and 18% from other countries. It has the most to worry about.

The White House says half of the cars we buy are already U.S.-made, with imports mostly from Mexico, Canada, Japan, South Korea, and Germany. But these tariffs could shift that spread.

This isn’t just about cars — it’s national security. Trump and Sen. Moreno say we’ve got to build here, not just assemble foreign parts. Moreno’s been on the phone with CEOs, and he’s fired up: "America can’t just be an assembler — we need to dominate the supply chain." Like in World War II — our factories churned out tanks and planes to win that war.

Moreno says this is the same playbook: Control production, protect the country. He’s got commitments from automakers to ramp up U.S. plants, creating thousands of jobs and rebuilding the middle class.

To ease the pain, Trump’s pushing a tax deduction on auto loan interest for U.S.-made cars. Moreno’s also rolling out the Transportation Freedom Act — one federal rulebook, no more state-by-state chaos like California’s EV mandates that bleed manufacturers dry. Moreno’s emphatic: "This isn’t a short-term bluff — it’s a long-term plan to bring the auto industry back."

Moreno has talked with dealers, too, telling them this is an opportunity for them to do more business, not less. Every car on lots today? Tariff-free. Used car sales? They’ll hold strong. Service departments? They’ll be busy as folks fix up older rides to dodge future price hikes.

The former dealership owner says he knows the auto business is tough, but it will adapt. But Detroit suppliers aren’t so sure — they’re warning part costs will climb, and that could trickle down to us.

What about you, the buyer? Prices might creep up. Ferrari just hiked its 10% — no sweat for the company. And Porsche says its vehicles will increase by 7% due to delivery costs. Mass-market brands might resist to keep you shopping. The smart buyer will compare deals — the research always pays off.

Not everyone’s cheering. Matt Blunt from the American Automotive Policy Council — repping GM and Ford — says it’s "hard to see tariffs not hitting prices eventually." Mike Stanton of the National Auto Dealers Association warns we’ll see fewer options and maybe fewer U.S. jobs. Foreign makers like Honda and Toyota, through Autos Drive America’s Jennifer Safavian, say it’ll make cars pricier and tougher to build here.

But here’s a curveball: The United Auto Workers union — after bashing Trump in 2024 — now loves this. President Shawn Fain calls it "a major step for autoworkers and blue-collar towns," pushing companies to bring union jobs home. Even Oxford Economics’ Abby Samp says automakers might be able to bargain — offering more U.S. factories for lower tariffs.

Trump’s administration says it's playing a long game — and the tariffs stay until 2029. He says it’ll bolster the industry and fill government coffers. Howard Lutnick, secretary of commerce, and Senator Moreno back him up: "Access to our market’s a privilege."

Check this out: Trade is 67% of Canada’s GDP, 73% of Mexico’s, but just 24% of ours. Yet, our 2023 goods trade deficit is over $1 trillion — the world’s biggest. Moreno says past leaders dropped the ball — Trump’s using our clout to put security and workers first.

Economist Dr. Arthur Laffer’s report, "Impact of a 25% Tariff on U.S. Auto Industry," says leaning on Canada and Mexico could save you $2,000 per car while boosting U.S. plants. Foreign brands are eyeing our factories — running at just 65% capacity — and fast permits could get them humming here.

So what’s next? More brands might shift production stateside, some are already moving to do that. Moreno says shuttered plants could quickly reopen. Some cars will cost more — dealers and buyers will adjust.

The White House says USMCA cars might dodge the full hit if they have enough U.S. content — details are still coming. Meanwhile, Moreno’s pushing that tax-deductible auto loan interest bill for American-made vehicles. It’s all about keeping cash in your pocket and jobs on our soil.

There you have it: President Trump is betting big on tariffs to make America an auto powerhouse again. It’s about security, jobs, and maybe your next car payment. Will it drive prices up or factories back? Give us your thoughts down below.