Automakers including Ford, Subaru, and Hyundai are raising vehicle prices in the U.S. in response to new auto tariffs imposed by the Trump administration—costs that are now being passed directly to consumers.
At a Glance
- Ford raised prices up to $2,000 on Mexico-assembled models due to 25% tariffs
- Subaru announced price hikes on most vehicles, excluding its EV Solterra
- Hyundai is increasing MSRP by 1% and raising delivery fees as tariff-free inventory runs low
- The Trump administration’s auto tariffs took effect April 3 under Section 232
- Retailers like Walmart and Mattel are also raising prices amid broader trade policy impacts
Auto Prices Climb at Dealerships
Ford informed U.S. dealers that starting in May, prices for the Mustang Mach-E, Maverick, and Bronco Sport—all assembled in Mexico—would increase by as much as $2,000 to offset rising tariff expenses. According to Business Insider, the company estimates that tariffs could cost it $2.5 billion in 2025 alone.
Subaru followed suit with across-the-board price hikes ranging from $750 to $2,000, though its all-electric Solterra is currently exempt. Hyundai, which imports the bulk of its U.S. lineup, is adding about 1% to MSRP and increasing shipping and accessory fees as it burns through tariff-free inventory.
Why It Matters
The 25% tariffs on imported cars and parts—implemented by President Trump under Section 232—are beginning to reshape the retail auto landscape. As Axios reports, automakers that rely heavily on non-U.S. assembly are particularly exposed and have little choice but to pass the cost burden to consumers.
Retailers are reacting similarly. Companies including Walmart, Mattel, and Ralph Lauren have increased prices in response to broader tariff hikes. As Wired warns, the affordable car may be disappearing in the U.S., with sticker shock affecting even entry-level models.
Watch a report: Tariffs Just Crashed the Car Market — Ford & Hyundai Raise Prices
What Comes Next
President Trump has suggested raising tariffs even higher to pressure automakers into building more vehicles domestically, as noted by Reuters. Meanwhile, discussions within the administration are considering exemptions for certain auto parts to prevent long-term damage to U.S. manufacturers, according to AP News.
With prices climbing and domestic production not yet scaled to meet demand, consumers may face a prolonged era of high vehicle costs and diminished affordability.
