Which Proposed Tariffs Could Affect Your Next Car?

If you’re planning to purchase a new vehicle in the near future, there’s a new elephant in the room that could affect everything from which cars you can afford to which ones remain on sale: tariffs. The Trump administration started proposing new tariffs on trade partners of the U.S. as soon as the new president took office, and many of the countries targeted by these proposals play a vital role in the auto industry’s supply chain.

Related: High Interest Rates, Fewer Used Cars Make Affordability the Toughest Challenge of 2025

Tariffs are taxes applied to imported goods that are paid by the party who imports them. You can check out our previous coverage for a more detailed explanation, but in short, this means that automotive companies — most of whom have highly international supply chains — will have to pay extra for vehicles or vehicular components they import from outside the U.S.

Proponents of tariffs want to incentivize companies to shift production to within the U.S., but moving around complex supply chains takes a long time and can cost a lot of money. Automakers don’t typically absorb the extra costs that arise when stiff tariffs go into effect; instead, they usually pass the extra costs onto consumers through higher prices, or they may even discontinue certain vehicles if it no longer makes financial sense to sell them here.

With that in mind, here’s a region-by-region breakdown of the Trump administration’s tariff proposals that could affect your next car purchase. This list only includes proposals made since Trump took office in 2025 and was last updated Feb. 3; it will be periodically updated when new tariffs are proposed or implemented.

North America

Our two neighboring countries, Canada and Mexico, are also two of our biggest trading partners, producing everything from automotive components (e.g., airbags and tires) to manufacturing equipment and, of course, entire assembled cars. Roughly $173 billion worth of vehicles, automotive parts and engines came from Mexico alone in 2024. Currently, trade with the two countries falls under the U.S.-Mexico-Canada Agreement, which was implemented during Trump’s first term in office. However, the implementation of additional tariffs would go against the terms of this agreement and ultimately make it more expensive for automakers to import cars and parts into the U.S. from these two countries. Those close to the president believe that these tariff threats are an attempt to prompt an early renegotiation of this trade agreement.

If Trump’s initial threat of a 25% tariff on our immediate neighbors is implemented, North American automotive production would be one of the most affected industries. Multiple manufacturers told Automotive News that the tariffs could bring the industry to a halt, with Automotive Parts Manufacturers’ Association CEO Flavio Volpe telling the outlet that 25% tariffs are “15% higher than anyone’s profit margins.” Those extra import costs could reportedly increase the price of a new car by an average of $3,000.

We’ve compiled a list of U.S.-market vehicles assembled in Mexico and Canada based on data reported through the American Automobile Labeling Act, which includes everything from economy cars to luxury vehicles and pickup trucks. These vehicles are among the most expensive goods imported from our immediate neighbors and would be some of the most affected by increased tariffs.

• Feb. 3, 2025: Similar to Mexico, tariffs on Canadian goods as well as Canada’s retaliatory measures will also be postponed for at least 30 days after Canadian Prime Minister Justin Trudeau negotiated a deal with President Trump to increase border security.
• Feb. 3, 2025: Mexican President Claudia Sheinbaum reached a deal to postpone tariffs on Mexican goods for one month after reaching a series of agreements regarding border security.
• Feb. 2, 2025: Canada and Mexico announced retaliatory tariffs on goods imported from the U.S. in response to Trump’s announcement. While Mexico was not specific when it vowed to retaliate, Canada released a list of targeted products that would face a 25% tariff starting Feb. 4., including passenger vehicles, trucks, tires, aluminum and steel products. While these retaliatory tariffs would be paid by importers based in Canada or Mexico, some vehicles and components cross the border multiple times as a vehicle is built, meaning that these additional fees would make U.S.-market vehicles more expensive to produce using existing supply chains.
• Feb. 1, 2025: Trump officially announced the implementation of 25% tariffs on goods from Canada and Mexico with the exception of a lower 10% rate for energy resources (such as oil) from Canada. These tariffs will go into effect Feb. 4. Trump did so under the International Emergency Economic Powers Act, claiming the U.S. is facing a national emergency related to migrants and illegal drugs, and vowed to keep the tariffs in place “until the crisis is alleviated.”
• Jan. 31, 2025: White House press secretary Karoline Leavitt confirmed to reporters that a 25% tariff on goods from Canada and Mexico would be implemented Feb. 1. While Trump previously said there might be an exemption for oil imports, no details on possible exemptions from these tariffs were given.
• Jan. 20, 2025: On his first day in office, President Trump said he planned to impose a new 25% tariff on goods coming from Mexico and Canada Feb. 1, citing concerns over immigration and illegal drugs.

China

China has been a particular focus in U.S. trade restrictions in recent history, with the previous Biden administration implementing stiff 100% import duties on Chinese electric and plug-in hybrid cars alongside additional tariffs on other components related to electrified vehicles and green energy.

Proponents of Chinese tariffs, including President Trump, frequently claim the country engages in unfair trade practices, though Trump also cites illegal drugs and immigration among numerous other reasons why he wants to crack down on Chinese trade. Trump wants to take things further to include new tariffs on all Chinese goods, which would increase the price of importing non-electrified cars, as well. As we did with Canadian- and Mexican-built vehicles, we’ve rounded up a list of vehicles built in China that would be affected by these tariffs.

• Feb. 4, 2025: China responded to Trump’s tariffs with a variety of measures meant to discourage trade with the U.S., with the one most likely to affect the cost of cars being an export control on certain minerals (including tungsten) that are vital to electronics. This makes it costlier for Chinese firms to export to the U.S. and is set to go into effect on Feb. 10.
• Feb. 2, 2025: Following the Trump administration’s tariff announcement, China’s Ministry of Commerce vowed to file a complaint against the U.S. over “wrongful practices” with the World Trade Organization. China’s Ministry of Foreign Affairs also pledged to take “necessary countermeasures” against the U.S. but did not offer specifics.
• Feb. 1, 2025: Trump also officially announced an additional 10% tariff on goods from China alongside the new tariffs on Mexico and Canada, citing the IEEPA and claiming China sends chemical components to manufacture illegal drugs such as fentanyl into the U.S. market. As with the Mexican and Canadian tariffs, Trump vowed to keep the tariffs in place “until the crisis is alleviated.” The tariff is set to go into effect Feb. 4. Inexpensive items from online retailers like Temu will be particularly affected, as part of the executive order closes a loophole called the de minimis exception that allows direct-to-consumer goods under $800 to be sent into the U.S. without being tariffed.
• Jan. 31, 2025: Leavitt confirmed that an additional 10% tariff on Chinese goods would go into effect Feb. 1 alongside the tariffs on Canadian and Mexican goods. While no further details were given, Trump previously stated these tariffs would be applied in addition to any existing tariffs on Chinese goods.
• Jan. 21, 2025: Trump announced that his administration would investigate the U.S. trade relationship with China on his first day back as president, only to follow it up the next day with a proposed 10% tariff on Chinese goods that would go into effect as early as Feb. 1.

Europe

The European auto industry is a major force in the U.S. market, but it, too, could be facing potential tariffs due to Trump’s longstanding dislike of the U.S. trade deficit with the European Union. Currently, Europe exports about $40 billion in automotive goods to the U.S., making the U.S. its top export destination.

Individual countries in Europe aren’t immune from Trump’s ire, either. Before taking office, Trump repeatedly threatened Denmark with retaliatory tariffs if it did not allow the U.S. to take over or purchase its territory of Greenland, including in a tense call with Denmark’s prime minister. Denmark’s auto industry is small compared to the likes of Germany or Italy, but you may find it significantly tougher to purchase a Zenvo supercar if a trade war breaks out.

• Feb. 3, 2025: While he did not give any specifics on rates or timelines, Trump pledged to instate tariffs on the European Union “pretty soon,” claiming Europe doesn’t buy enough American goods. EU leaders vowed to “respond firmly” to any tariffs placed against the bloc. Trump also claimed the U.K. was “out of line” even though the U.K. imports more from the U.S. than it exports to our country, but was optimistic that some kind of trade deal could be worked out.
• Jan. 21, 2025: While no specifics were given on an amount or implementation date, Trump reiterated his desire to apply tariffs on EU-made goods. “We have a $350 billion deficit with the European Union. They treat us very, very badly, so they’re going to be in for tariffs,” Trump said.

Other Countries

As we’ve noted, the U.S. automotive supply chain is a highly global one, which is why your German-made Volkswagen might include fuel system components from Brazil, or your latest replacement part might have been made in India. Here’s a roundup of additional tariff proposals that could affect these parts.

• Jan. 28, 2025: Trump described India, Brazil and China as “tremendous tariff maker[s]” at a retreat for House Republicans, arguing that these three countries act against U.S. interests to protect their own. While China has previously been named as a prime target for additional tariffs, no specific amounts or timelines were given regarding possible tariffs on India or Brazil.
• Jan. 26, 2025: Trump threatened to instate immediate 25% tariffs on all Colombian goods over a dispute regarding migrants, but backed down when the two countries came to an agreement. Colombia produces a number of automotive components for international markets, including electrical components, batteries, interior fittings and tires.

Potential Global Tariffs

Trump isn’t just going after certain governments with proposed tariffs — he’s also targeting certain industries and ordering a wider review of all U.S. trade relationships. Computer chips and semiconductors are vital components of nearly every piece of technology we interact with, including cars, and most of the chips imported into the U.S. currently come from Taiwan. They’re so vital to so many industries that some see the reliance on these foreign-made components as a national security risk. As such, Trump wants to implement tariffs on imported chips and semiconductors in hopes that it will boost U.S. production of these goods.

While some companies are already in the process of increasing stateside production in response to the Creating Helpful Incentives to Produce Semiconductors and Science Act’s incentives, increased tariffs could be bad news for the automotive industry, which is still recovering from the effects of pandemic-era chip shortages. Fewer cars were made at the height of the chip shortage, which resulted in higher prices for new cars and more buyers turning to the used market. The downstream effects of the inventory shortage are still being felt today as there are fewer late-model cars returning to the used market, leading to higher prices for used cars that are now typically higher-mileage and older than in previous years.

Computing components aren’t the only industries being threatened with higher tariffs, however, as raw materials and other products have also been the subject of tariff threats.

• Jan. 27, 2025: At a retreat for House Republicans, Trump said that he would like to implement tariffs on computer chips and semiconductors “in the very near future.” No specific timeline or amount was given on these tariffs, but Trump said, “They’re not going to want to pay a 25, 50 or even 100% tax. If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America.”
• At the same retreat, Trump said that an announcement regarding tariffs on steel, aluminum and copper was imminent, but he told reporters after the retreat he had not chosen a specific rate yet for those tariffs.
• Jan. 20, 2025: Trump signed a trade memorandum on his first day in office ordering federal agencies to complete various reviews of U.S. trade relationships by April 1, which inquired about the possibility of a “global supplemental tariff” to offset trade deficits.

More From Cars.com:

• Which Cars Are Made Outside the U.S.?
• What to Know Before Purchasing an Electric Vehicle: A Buying Guide
• Thinking About Getting an EV Before the Tax Credit Changes?
• How to Buy a Car, According to Cars.com Experts
• 2024 Cars.com American-Made Index: What About the Least American Cars?

Related Video:

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.