Vehicle sales are predicted to plummet from auto tariffs and tightened spending by Americans due to import taxes on other goods

On March 26, 2025, President Donald Trump announced new tariffs on foreign autos. A fact sheet prepared by the White House said the tariffs would apply to imported passenger cars and light trucks, as well as many auto parts such as engines, transmissions, powertrain parts and electrical components.

Vehicle prices will surge $5,000 to $10,000 and tariffs will wreak havoc on auto demand, analysts say.