‘Much more expensive’: What do Trump’s auto tariffs mean for car prices?

The car ravifs, announced by President Donald Trump, are likely to increase the prices of cars by thousands of dollars days after the policy enters, while the cost of tourism for repair and insurance, some experts told ABC News.

Within hours after the Ferrari policy is unfolded, it said it would raise prices by as much as 10%so that some models could compensate for the rates.

25% tariffs that will come into force next week will apply to imported passenger vehicles, including cars, SUVs, minovers, trucks and light trucks, according to a White House statement published after the remarks of Trump’s oval office on Wednesday.

Tariffs will also be applied to key import auto parts, including engines, power parts and electrical components.

“I talked to users who say,” Well, I don’t buy a car, so it doesn’t really matter. ” Well, think again, “said Jessica Caldwell, the leader of Edmunds insights, told ABC News.” This is really all covered. “

In a statement on Wednesday, the White House declared tariffs as a means of protecting the US national security and economic power.

“President Trump is taking action to protect the automotive industry in America, which is vital for national security and is undermined by excessive imports, threatening the internal industrial base and supply chains in America,” the White House said.

Tariffs will almost certainly increase the prices of cars made abroad, experts said, as importers usually go through a share of the tax burden for consumers in the form of additional costs.

Last year, US buyers bought approximately 16 million cars, Jiveta and light trucks, half of which were imported, the White House said.

The other half of the automotive sector-composed of cars manufactured in the US-will also suffer considerable prices as manufacturers will face higher costs for imports and face demand as buyers are looking for internal alternatives, experts said.

“The question is: What will happen to all the cars made here in the US?” Christopher Colon, Professor of Economics at New York University who studies trade, told ABC News.

“Competitive vehicles will be many, much, much more expensive. We will see some replacement with American models and I expect these prices to rise significantly,” Colon added.

Dan Ives, managing director of Equity Research at Wedbush investment company, predicts the overall price increase in US buyers’ rates between $ 5,000 and $ 10,000 per vehicle.

Added costs can reach up to $ 20,000 per vehicle, Art Wheaton, director of labor research at the Cornell School of Industrial and Labor Relations, which is studying the automotive industry, ABC News told ABC News.

The sticker shock to new cars will send many buyers to the used car market, sending prices higher for pre-owned vehicles, experts said.

“The market will become very competitive for used car buyers,” Colon said. “I expect these prices to rise.”

Auto parts tariffs are also likely to increase the cost of repairing cars, as car shops can go through additional costs for customers, experts said. For their part, they add that insurance costs are likely to increase for additional costs in the event of an accident.

“If you get into an incident that requires many parts, it will probably lead to an increase in these costs,” Caldwell said.

The prices of new cars can rise within days after the start of the rates on April 3, some experts said.

Some companies may raise the prices of inventory, which is already in the United States, although these cars have not been targeted, as the expectation of higher costs can increase prices, said Thomas Henig, a senior associate at the University of George Mason and a former President of the Kaza Federal Bank.

“Some sellers will raise prices in anticipation of tariffs,” Hoenig said.

Some experts disagree, saying that a price increase may take weeks or time remains unknown.

“It will take some time to understand everything,” Caldwell said, predicting that the price increase will be mastered “quite soon.”

The US automotive sector relies on a supply chain complexly intertwined with Mexico and Canada.

Mexico and Canada make up the first two trading partners in the United States for both completed motor vehicles and automotive parts, according to an analysis of data from the US Commission on International Trade from Cato Institute, Right Brain Trust.

Car tariffs facilitate the tax weight, trapped by vehicles covered by a US-Canada Free Trade Agreement, known as the United States Agreement Mexico-Canada, or USMCA. For such cars, tariffs will only apply to the value of their content, which is not in the United States, the White House said.

Meanwhile, the car parts covered by USMCA will be left without tariffs until the Trump administration has established a process to evaluate the value of their content, which is not in the United States, the White House added.

Relieving vehicle rates covered by USMCA can delay the initial price increase, Hoenig said.