Trumps tariffs on Canada, Mexico could surge car prices up to $12K: report

New car prices could surge as much as $12,000 after President Trump’s tariffs on Canada and Mexico take effect, according to a report.The president’s 25% tariffs on the neighboring countries would send the cost to build a crossover utility vehicle up at least $4,000, according to a new study from Anderson Economic Group, an automotive research and consulting firm.The increase would be three times that for an electric vehicle, and the costs will likely be passed on to the consumer, according to the study, earlier reported by Bloomberg.“That kind of cost increase will lead directly — and I expect almost immediately — to a decline in sales of the models that have the biggest trade impacts,” Patrick Anderson, the consulting firm’s chief executive, told Bloomberg.Vehicle prices are already unusually high due to pandemic-era inflation, nearing $50,000 on average for new car sales. The average transaction price last month was $49,740 – just $200 shy of its December 2022 peak, according to a Kelley Blue Book report.After a month-long pause, Trump’s hefty tariffs are set to take effect on Tuesday. Experts are warning the taxes could worsen price hikes across the auto industry, and force carmakers to halt production of some popular models, like the Chevrolet Silverado pickup and Ford Bronco Sport SUV.The planned tariffs have sent auto executives into panic mode, with Ford CEO Jim Farley warning last month that they would “blow a hole in the US industry that we have never seen.”Top brass at General Motors, Ford and Stellantis – which owns brands including Jeep, Dodge and Ram – met with the Commerce Department last week via Zoom to share their concerns, people familiar with the matter told Bloomberg.The vehicle execs reportedly asked the White House to focus solely on imported cars that don’t contain any US-made parts, since many US-manufactured vehicles contain parts from other countries.Tesla – owned by close Trump ally and DOGE leader Elon Mus...