US Tariffs Could Hike Car Prices by $3,000

US tariffs on imported cars, currently suspended for 30 days, could lead to a domino effect across the automotive industry, potentially raising new car prices by an average of $3,000 in 2025. The tariffs, initially targeting Mexico and Canada, would impact major car manufacturers like Volkswagen, Audi, BMW, Stellantis, Honda, Hyundai, Kia, Mazda, Toyota, and Nissan. These manufacturers produce a significant portion of their vehicles in Mexico and Canada, which are key export markets for the US. Analysts estimate that Volkswagen could lose €8 billion in revenue due to the tariffs, while Stellantis could face a €16 billion loss. The impact could lead to a decrease in profits for car manufacturers by 5% to 15%. The average price of a new car in Italy was €30,096 in 2024, a 43% increase since 2019. The tariffs could further inflate prices, potentially reaching €3,000 higher than current levels in 2025.