Source: Outlever
As markets reel from the introduction of the Trump Administration's new global 'reciprocal' tariffs, consumer impact analysis is beginning to show the likely effects. A newly released report from automotive consultancy Anderson Economic Group predicts a steep financial jolt to American consumers and dealers. The report says U.S. consumers may lose more than $30 billion in the first year alone, as higher vehicle prices and reduced sales take their toll.
Revenue vs. reality: The White House suggests tariffs could generate up to $100 billion in annual revenue, but the AEG report (and many others) question the figures. The report warns that a considerable share of costs will fall on buyers and businesses along the supply chain. Tariffs could add $2,500 to $5,000 for smaller vehicles, $5,000 to $8,500 for midsize SUVs and vans, and $10,000 to $12,000 or more for large SUVs, luxury, or battery-electric models.
For cars imported from Europe or Asia, expected tariffs might range from $8,000 to $10,000 on compact and midsize offerings, climbing beyond $20,000 for high-end sedans, SUVs, and sports cars.
AEG’s analysis suggests these higher prices could appear within a month on popular models, though dealers with large inventories may delay hikes by two months.
Pre-tariff buying spree: Consumers are already rushing to lock in pre-tariff deals, as CBS News reports anecdotal cases of buyers acting fast. Retail sales have bumped up, with shoppers hoping to avoid vehicle price increases of several thousand dollars.
Domestic brands: Domestic brands like Chevrolet, Ford, and Chrysler face varied cost effects based on content and assembly locations. Honda, Toyota, and others with North American plants may dodge some tariff strain on specific models but still pay more for midsize trucks or full-size SUVs. Luxury marques such as BMW see higher-dollar impacts, especially on top-tier models.
Secondhand surge: Used-vehicle owners might see rising demand for their cars as more buyers look for cheaper alternatives. AEG's CEO Patrick L. Anderson advises prospective buyers to act quickly if they find an acceptable deal, saying, "If you are in the market for a new car and you find one you like, my advice is to buy it right away. If you have a used car you rely upon, my advice is to make sure it is well maintained as you are likely to use it for a while longer than you had earlier planned."