Copyright ©ChevroletAlthough President Donald Trump recently announced measures to ease the impact of tariffs on the automotive industry, the current 25% tariffs on imported vehicles into the U.S. will remain in effect. This is expected to result in higher prices for consumers as additional expenses are added to imported vehicles, which are typically more affordable than those produced in the U.S. Here is a comparison of the typical costs of domestically manufactured cars versus those made abroad. According to a recent report from Cars.com, cars assembled in the U.S. have an average price of around $53,000, which is higher than any other country. Cars assembled in China have an average price of $51,000, those assembled in Canada have an average price of $46,000, and cars assembled in Mexico have an average price of $40,000. David Greene, an industry analyst with Cars.com, pointed out that even without tariffs, U.S.-made vehicles already come at a premium, with the average price for all new cars being about $49,000. Greene noted that most budget-friendly car models available are produced outside the U.S. He mentioned that only three models priced under $30,000 are currently manufactured in the U.S., including the Honda Civic in Greensburg, Indiana, the Toyota Corolla in Blue Springs, Mississippi, and the soon-to-be-discontinued Chevrolet Malibu in Kansas City, Kansas. Greene highlighted that automakers might prioritize higher-margin models over affordable options due to thin profit margins on the latter. He expressed skepticism that tariffs would bring down the cost of domestically produced cars anytime soon, citing the significant investments and time required to ramp up production. Greene suggested that consumers considering buying a new car do so sooner rather than later to potentially avoid tariff-related price hikes.
“In the United States,” he explained, “the majority of vehicles manufactured here still heavily rely on parts sourced globally. Based on the latest Industry Insights Report from Cars.com, over half of vehicles assembled in the U.S. contain significant imported components. As a result, price hikes won’t be exclusive to foreign-made models.”
