The global automotive industry is facing a major impact due to US President Donald Trump's announced 25% tariff on cars and parts imported into the US. This policy is expected to raise vehicle prices, reduce model variety, and limit the features available to consumers. On April 2, 2025, which Trump called “Liberation Day,” a 10% tariff was also imposed on all goods imported into the US.
With this policy, US consumers will likely have to spend more on new vehicles, which are expected to see drastic price increases in the near future. Here is a breakdown of the estimated price increases by vehicle type:
- Lowest Fare Impact Vehicle
- Additional cost: US$2,500 US$5,000
- Affected models: Honda Civic, Honda Odyssey, Chevy Malibu, VW Jetta, Ford Explorer
- These cars have a high local material content and therefore lower tariff burden.
- Mid-Sized Vehicles
- Additional cost: US$5,000 US$8,500
- Affected models: Some Jeep, Ram, and Toyota Truck models
- Vehicles in this category still have a heavy reliance on imported parts from Canada, Mexico, and Europe.
- Full-Size SUVs and Electric Vehicles
- Additional cost: US$10,000 US$12,000
- Affected models: Large SUVs with parts imported from various countries
- Electric cars risk a price increase of up to US$15,000 due to the new tariffs.
- Luxury and Sport Vehicles
- Additional cost: More than US$20,000
- Affected models: Luxury sedans, premium SUVs, and sports cars
- Vehicles in these segments tend to have high base prices and rely on highquality imported parts.
Source: international.kontan.co.id
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