Your new car could cost thousands more thanks to Trump’s auto tariffs—and GM and Ford could lose billions, analyst warns

President Donald Trump’s 25% tax on imported cars, light trucks, and auto parts is likely to drive up prices at a time when many Americans already struggle to afford a new set of wheels. The tariffs will also force car companies to rethink what cars they make and where they make them.

Trump has been itching to tax foreign autos for years. In his first term, he declared auto imports a threat to national security, which gave him the authority to impose tariffs on them. On Wednesday, he went ahead and imposed the levies.