Buy American Or Pay The 25% Price: The Real Impact Of Trump’s Car Tariff

Alright, so here’s the deal—Trump just cranked his trade war up to 11, and it’s about to get real expensive for anyone eyeing a foreign ride. He’s slapping a hefty 25% tariff on all cars not made in the U.S., and it sounds like nobody’s safe—Canada, Mexico, Europe, you name it.

In his speech, Trump made it sound like this move is going to supercharge American car manufacturing and bring jobs back, saying the industry is going to "flourish like it’s never flourished before." But let’s be honest—when companies get hit with higher costs, they usually just pass the buck to us, the buyers. 

The tariff’s not just on the cars themselves, either—it’s hitting engines, transmissions, powertrains, and a bunch of other car parts too. While U.S.-built cars are technically safe, Trump made it clear he’s keeping an eye on the parts those cars use. If you’re driving a "made in America" car packed with foreign parts, you might not be off the hook. Basically, if it didn’t come from the U.S., it’s probably getting taxed.

There’s some wiggle room for automakers under the USMCA, though. If they can prove how much of their car is actually American-made, the 25% tariff will only hit the foreign content. But until they figure that out, prices could shoot up fast.

Trump also floated the idea of letting Americans write off car loan interest—kind of like how you can with mortgage interest—but only if you buy American-made. Sounds cool on paper, but the details are still a total mystery. Long story short, if you’re car shopping, buckle up—it’s about to get rough. Prices could spike as soon as next week. We’ll know more on April 2.