President Trump’s tariffs are hitting the auto industry in multiple ways, creating havoc for both car companies and buyers trying to assess the impact.

President Donald Trump’s 25 percent tariffs on all auto-related imports have been called “a debacle of epic proportions” and a sure-fire way to tank the auto market by crushing demand. Analysts have been predicting everything from $12,000 per vehicle price hikes to the possible “Cubanization” of the US car fleet.

Austin dealerships are bracing for a 25% tariff on foreign vehicles, fearing increased costs and reduced inventory.

Fallout continues after President Donald Trump's unveiling of severe tariffs against virtually all U.S. trading partners. Thursday was the worst day for U.S. stock markets since June 2020. China struck back on Friday, announcing a 34% tariff on American goods as other foreign leaders weigh their response.

Prime Minister Mark Carney’s announcement of reciprocal tariffs on non-USMCA-compliant, US-made automobiles marks the third time the Canadian government has responded to Trump's trade war measures.

The proposed tariffs by the Trump administration could significantly impact the U.S. car market, affecting both new and used vehicle prices.

"Actual impact will depend on a number of factors ... $100 billion to $125 billion in costs across the entire auto industry. In early March, Trump postponed auto tariffs for 30 days. But on Wednesday, he said no more pauses in tariffs for the auto sector.

President Trump's new tariffs on imported goods will likely increase consumer prices on essentials and big-ticket items, disproportionately affecting low-income households. Economists highlight potential job losses and inflation impacts.

President Donald Trump 25 % tariffs on imported vehicles to the United States has taken effect. The Trump administration also plans to place tariffs on auto parts in the near future. The changes have many consumers wondering how this will impact their wallets.