New tariffs on imported vehicles were implemented, potentially raising new car prices by thousands of dollars. The 25% tariff applies to all cars assembled outside the U.S., including imported auto parts starting May 3. Partial exemptions exist for vehicles made in Mexico or Canada under free trade agreements. However, cars assembled in the U.S. with foreign components will also see price increases due to the tariffs on parts. For example, Mercedes-Benz cars made in Alabama rely heavily on imported engines and transmissions, increasing their costs significantly. Cars with higher percentages of U.S.-made parts, such as the Tesla Model Y or Honda Passport, will be less affected. Consumers purchasing used cars or auto parts may also face higher costs. Industry experts warn that these tariffs could lead to increased prices across the automotive sector, affecting both new and used car markets, as well as insurance premiums due to more expensive repairs.
— new from The New York Times
