The aggressive tariff policy of the United States, aimed at altering the global trade balance and protecting domestic industry, is expected to dramatically influence the prices of vehicles sold in the American market. According to data from Insurify (May 2025) and Visual Capitalist, these tariffs are projected to increase the average price of a new vehicle by approximately 15%. However, the impact is not uniform: while some brands are expected to experience sharp price hikes, others will be less affected, depending on their production origin and reliance on global supply chains. This analysis will examine the differing vulnerabilities of leading automotive brands and present the potential consequences for consumers and the market.

Tariffs as a Mechanism for Price Increases: How it Works

Tariffs are essentially taxes imposed on imported goods. Their primary purpose is to make goods coming from certain countries more expensive, thereby making domestic products more competitively attractive, or to pressure other countries to change their trade policies. When tariffs are imposed on vehicles or vehicle components imported into the U.S., the cost of producing or importing these vehicles increases. These costs are typically passed on to the final consumer, resulting in higher prices for new vehicles.

The average figure of a 15% increase in the price of a new vehicle highlights the broad impact of the tariffs. However, the key to understanding the variation among brands lies in where the vehicles and their components are manufactured. Companies that produce a significant portion of their models or components in China, or in other countries affected by high tariffs, are expected to bear the greatest impact.

Highly Vulnerable Brands: Buick, Hyundai, and Kia Lead the List

The data clearly shows which brands are particularly exposed to price increases:

Buick: With an anticipated increase of 22%, Buick tops the list of most vulnerable brands. The main reason for this is that “many of Buick’s models are produced in China,” making them especially susceptible to tariffs imposed on imports from China.

Hyundai and Kia: These two South Korean manufacturers are expected to experience significant price increases of 22% and 21% respectively. Although they have manufacturing plants in the U.S., their reliance on importing parts or models from affected countries appears to cause this vulnerability.

BMW: The German manufacturer is projected to see a 19% increase in its prices. Although some BMW production for the U.S. market takes place in the U.S., certain models or the company’s global supply chain appear to be exposed to tariffs.

Mazda and Lexus: These two Japanese manufacturers are expected to see increases of 19% and 17% respectively, indicating reliance on importing models or components from tariff-affected sources.

Subaru: Another Japanese manufacturer, with an anticipated increase of 16%.

Chevrolet and Nissan: Both are expected to rise by 15% and 14% respectively. Even though Chevrolet is an American brand, exposure to a global supply chain and imported components can also affect it.

Volkswagen and Toyota: These two automotive giants, German and Japanese respectively, are projected to experience a 14% price increase.

Ford and GMC: These two American car manufacturers are expected to rise by 13% and 12% respectively. Despite being domestic brands, they are also somewhat dependent on imported components.

Brands with Low Vulnerability: Honda, Jeep, and Tesla

In contrast to the severely impacted brands, some companies will manage to mitigate price increases:

Honda: The Japanese manufacturer is expected to see an 8% increase, significantly less than Mazda, Lexus, and Subaru, which could indicate a higher percentage of local production in the U.S. or a supply chain less exposed to tariffs.

Jeep: Another American brand, with an anticipated increase of 6%, pointing to substantial domestic production.

Tesla: Stands out as the brand with the lowest increase, only 3%. The explanation for this is that “most Teslas sold in the U.S. are produced domestically, with most components being sourced from North America.” This low reliance on importing components from tariff-affected countries gives Tesla a competitive pricing advantage for the end consumer in the U.S. market under tariff policies.

Implications for the Automotive Market and Consumers

Such significant price increases could lead to several consequences in the American automotive market:

1. Decrease in Demand: More expensive vehicles may suppress consumer demand for new cars, leading to a decline in sales.
2. Shift in Consumer Preferences: Consumers might favor brands or models with lower price increases, or turn to the used car market.
3. Impact on Manufacturers: Car companies will need to re-evaluate their supply chains, move production to the U.S. or to countries not subject to tariffs, or absorb part of the costs, which will impact their profit margins.
4. Competitiveness: Brands like Tesla and Jeep, with lower exposure to tariffs, will gain a competitive pricing advantage, potentially increasing their market share.
5. Inflation: Price increases in vehicles, which are significant consumer goods, could contribute to overall inflationary pressures in the U.S. economy.

The chart, sourced from Insurify (May 2025) and Visual Capitalist, provides a sharp snapshot of the varying vulnerability of car manufacturers. These developments highlight the complex dynamics between government trade policy and global supply chains, and their direct impact on the consumer’s pocket.

Summary: Tariffs, Car Prices, and Potential Market Shift

U.S. tariff policy is posing a significant change for the American automotive market, with an anticipated 15% increase in the average price of a new vehicle. Vulnerability varies dramatically among brands, with those dependent on imported production or components from China and other countries expected to bear the greatest impact (such as Buick, Hyundai, and Kia). In contrast, manufacturers with strong domestic production like Tesla will be minimally affected. These implications may include a decrease in consumer demand, shifts in purchasing preferences, and increasing pressure on car manufacturers to adjust their production and supply strategies. The information in this article is provided for professional review purposes only and does not constitute investment advice.