Auto Tariffs Could Add Thousands to Vehicle Prices, Impacting Dealers Nationwide

A wave of new auto tariffs could hit as early as Thursday morning, potentially raising vehicle prices by thousands of dollars and creating confusion for both automakers and car buyers.

NBC’s Brian Cheung reported from a Long Island Honda dealership, where two cars in the same showroom face drastically different futures under the proposed tariffs. The Honda Prologue, an electric SUV, is built using parts sourced from countries like Mexico and South Korea—meaning up to 40% of its components could be subject to the tariffs. Meanwhile, the Honda Civic, though it carries a Japanese badge, is assembled in Greensburg, Indiana—possibly exempting it from the same level of taxation.

The proposed tariffs, which could impose a 25% tax on imported auto parts and vehicles, are part of the Trump administration’s broader trade strategy. Goldman Sachs estimates the increase could raise prices for foreign vehicles by as much as $15,000.

While exact details are still pending, auto industry insiders warn the impacts could hit within weeks—not months—depending on the final language of the tariff plan. Dealers across the country are preparing for a potentially major disruption in pricing and inventory.

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