US President Donald Trump’s 25% tariffs on imports from Canada and Mexico are currently in effect. The new obligations collected for two North American countries are expected to raise new car prices. One dealer in Glen Mills, Pennsylvania, called the new tariff “Pretty Radical” in an interview with Fox Business today, and the clip was posted to X.
David Kelleher, owner of David Auto Group and owner of Chrysler’s Dodge Jeep Ram store, said customers who previously ordered RAM were not making purchases as truck prices rose from $80,000 to $100,000. “No one is going to buy a truck because the price has only risen by $20,000,” Kelleher said.
It is not clear how much the price of new cars will rise. Kelly Blue Book reported yesterday that prices could rise at least $3,000, and increased by $10,000 for certain full-size trucks. Parts and vehicles cross the North American boundary several times during the assembly process before they arrive at the showroom.
Raw aluminum, transformed into pistons, could cross the border six times, three of which could be subject to 25% tariffs. Retaliation tariffs from Mexico and Canada will add even more costs to that journey. This tariff also applies to used car parts, and car insurance costs can increase as repair costs increase.
The automaker has been supporting new tariffs since it was first announced a few days after Trump’s inauguration. He issued a 30-day hiatus in early February after speaking to leaders from both countries, but Trump doesn’t believe that both countries have done enough to stop the flow of drugs to America.
The president also proposes an additional 25% tariff on all imported vehicles as he is investigating trade disparities with US partners, including Japan, South Korea and the European Union. It could come into effect immediately on April 2nd, one of several new tariffs, with Apple enacting its Apple on pharmaceuticals, semiconductors, steel and aluminum.
