President Trump is imposing 25 percent tariffs on auto imports, which is expected to drive up prices for American consumers and squeeze automakers that depend on global supply chains.

The tariffs will impact popular foreign brands like Toyota and Honda but also American car manufacturers like Ford and General Motors, which rely on imported parts and assemble many of their vehicles in Canada and Mexico.

That means car shoppers should prepare for higher prices at the dealership.

"It’s reasonable to expect that vehicle prices will rise, which presents an added challenge to an industry that is already grappling with ongoing affordability concerns," Jessica Caldwell, head of insights at Edmunds, said in a statement.

The White House claims the tariffs will "protect America’s automobile industry," which it says has been undermined by "excessive imports."

Half of the cars, SUVs and light trucks Americans bought in 2024 were imports, according to a fact sheet published by the Trump administration. When you factor in car parts, the White House said "only 25% of the vehicle content can be categorized as Made in America."

Here's what the tariffs could mean for your wallet.

How much will car prices rise?

Last month, the average transaction price for a new vehicle was $47,373, up

© The Hill