Tariffs push U.S.-assembled car prices to $53,000

Vehicle Prices Rise Due to Tariffs

President Donald Trump has stated that the objective of these measures is to strengthen the domestic automotive industry. However, according to a recent report from Cars.com, vehicles fully assembled in the United States now have an average price of $53,000—significantly higher than the overall average of $49,000. That’s a difference of nearly $5,000.

David Greene, an industry analyst, told FOX Business that U.S.-made vehicles are becoming increasingly unaffordable due to factors such as higher labor costs, stricter safety and emissions regulations, and a production focus on higher-margin trucks and SUVs. In contrast, vehicles made in Canada average $46,000, while those manufactured in Mexico average $42,000.

Economy cars, especially those priced under $30,000, are the most affected. In April, 90% of these models were imported, including popular options like the Hyundai Elantra, Kia Forte, and Nissan Sentra. Only the Toyota Corolla and Honda Civic are assembled domestically in this segment, along with some remaining inventory of the discontinued Chevy Malibu.

This has driven price increases across all segments. In April alone, the average price of vehicles made in Mexico rose by $1,100, and overall new car prices increased by 0.8% year-over-year. Imports priced under $50,000—which make up 60% of the market—are being hit the hardest by these increases.