
Will the car you like have higher tariffs?
Whatever the nature of the tariffs, those who end up paying more are the consumers. The case of cars shows this clearly.
If you are thinking of buying a Toyota, a Hyundai or a Mercedes, get ready: as of April 3, those models - and many other imported ones - could go up in price due to a new 25% tariff announced by Donald Trump. The former president has decided to extend his trade war to the automotive sector, and this time the impact will be direct for consumers, especially Latinos in the United States who dream of having a good car at an affordable price.
The measure affects all vehicles and components that are not manufactured in the United States, including new cars, light trucks and spare parts. The tariff will be added to existing tariffs (2.5% on average), which means that many cars will be taxed at 27.5%, and in the case of Chinese electric vehicles, up to 125%.
"We're going to charge countries for doing business in our country and taking our jobs," Trump said from the Oval Office, presenting this decision as a way to protect local industry, albeit with global consequences.
Which models will be most affected?
According to experts and manufacturers, the most popular models among U.S. and Latino consumers that will be impacted by these new tariffs include:
- Toyota RAV4 and Corolla: Although produced in part in the U.S., they still rely on imported components from Japan, Mexico and Canada.
- Hyundai Tucson and Elantra: Vehicles manufactured in South Korea, which exported 1.4 million cars to the U.S. in 2024.
- Mercedes-Benz GLE and GLS: German luxury vehicles that could face both U.S. tariffs and European retaliation.
- Jeep Compass: Assembled in Mexico with parts that cross the border several times.
- Tesla Model 3 and Model Y: Despite being a U.S. brand, their production lines include components made in Asia, which would increase costs.
Even Elon Musk, head of Tesla and current Trump advisor, warned that the measure will have an impact: "It will affect the price of parts for Tesla cars coming from other countries. The impact is not trivial."
Why does this matter?
Because the U.S. imported 8 million vehicles in 2024, making it a key market for manufacturers around the world, especially from countries like Mexico, Canada, Japan, South Korea and Germany.
In North America, production chains are so integrated that car parts may cross borders several times before being assembled. Mexico, for example, exports 80% of the vehicles it produces to the United States. And although cars assembled in Mexico and Canada have a partial exemption - they only pay 25% on non-U.S. parts - costs will continue to rise.
From Toyota to Ford, manufacturers have called for protecting regional competitiveness without affecting the consumer. But the reality is that prices could increase by several hundred to several thousand dollars per vehicle, according to the Center for Automotive Research.
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The international response: growing tension
Countries such as Germany, France, Japan and Canada condemned the measure. In Europe, the German government called for a firm response from the European Union, while France warned that they could raise their own tariffs on U.S. products.
Trump, far from backing down, threatened to impose even harsher tariffs if these countries take action against him. "If they work together to hurt us economically, we will respond with force," he declared.
Paradoxically, this measure could also hit U.S. manufacturers themselves, which rely on imported components. Even major players such as General Motors, Ford and Stellantis (Jeep and Chrysler) expressed concern, asking to preserve "North American automotive production", which includes Mexico and Canada under the T-MEC.
The tariff war does not end with cars. Trump has announced a so-called "Deliverance Day" for April 2, when he plans to impose reciprocal tariffs on all countries in the world in retaliation for what he considers inaction against irregular migration and fentanyl trafficking.
On that day, the postponement of an additional 25% levy on all products imported from Mexico and Canada also expires. This could lead to a further escalation of regional trade tensions right in an election year.
So... should I wait to buy a car?
That's a good question. If the car you want is imported or uses foreign parts, it will likely become more expensive in the coming weeks. Many dealers and consumers are getting ahead of the hikes. Others are evaluating locally made options, although they are not always cheaper.
What is clear is that, once again, trade policy becomes a battleground with daily consequences. Because at the end of the day, the question is no longer what Trump thinks or what allies will say, but how much more your next car is going to cost you.
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