Car prices expected to soar by up to $12K as new auto tariffs hit

Buying a car? How could Trump's tariffs impact your purchase

Starting April 2, new tariffs will go into effect for foreign made cars. What does this mean for people looking to buy a new car?

LOS ANGELES - Thinking of buying a new car? You might want to act fast as new tariffs are set to take place April 2.

Tariffs imposed

The backstory:

President Donald Trump announced Wednesday he would be placing 25% tariffs on auto imports, a move the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.

The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as even U.S. automakers source their components from around the world. The tax hike starting in April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a "ridiculous" supply chain in which auto parts and finished vehicles are manufactured across the United States, Canada and Mexico.

Meanwhile, the new tariffs are sparking backlash. Canada and the European Union warned of retaliation, saying the move would hurt consumers and workers.

Trump imposes 25% tariff on foreign cars

President Trump announced a 25% tariff on foreign-made cars that will go into effect April 2.

Impact to consumers

By the numbers:

With the new tariffs, experts believe car prices will rise... hurting the average consumer.

Shelby Rothman with Enjoy Financial said prices could increase by $4,000 to $12,000 on each individual car.

"Cars were already expensive as inflation was already at 3%, and we would expect it to increase even more. This will also affect the demand for new cars, and we would expect that we would manufacture about 20,000 less vehicles per week, which would affect the workers and employment overall in the auto industry," Rothman told FOX 11.

The 25% tariff also applies to imported car parts.

"Even cars like the Chevy Silverado, they have parts that are from the US and other countries, they're put together in a factory in Mexico and then brought back here to the US. That car, even though it's American, would have that 25% tariff," Rothman added.