The truth about car prices under U.S. tariffs: the same model is sold at the highest price in the U.S.

Trump's 25% import tariff on cars is still ongoing, what does this mean? The Wallet will have to shrink again.

According to the latest data from Cars.com, the average price of new cars assembled in the U.S. is $53,000, making it the most expensive in the world—China $51,000, Canada $46,000, Mexico $40,000. Even the industry average of $49,000 hasn't been reached, and American cars are already at a premium.

What’s even more heartbreaking is that there are only 3 affordable cars priced below $30,000 produced domestically in the U.S.: the Honda Civic (Indiana), the Toyota Corolla (Missouri), and the Chevrolet Malibu (Kansas, which is also set to be discontinued). Moreover, of these three cars, nearly half of the Civics are imported from Canada, and a quarter of the Corollas come from Japan.

Key Question: Can tariffs lower car prices in the US?

The response from Cars.com analyst Greene was very straightforward: No, at least not in the short term.

In theory, it sounds wonderful - making cars in the United States, controlling costs, and lowering prices. But the reality is harsh. Expanding production capacity in the U.S. requires a lot of money to build factories, hire workers, and retrain the supply chain. These costs will not disappear out of thin air; in the end, it will still be the consumers who foot the bill.

What’s even more heartbreaking is this: over 50% of American assembled cars use imported parts.

Even if you buy an “American car”, it is filled with globally sourced parts. So tariffs do not only affect imported cars; the prices of domestically assembled cars will also rise.

Now is the last opportunity to get on board.

Greene suggests: If you want to buy a car in the next few months, act now.

The current dealer inventory still has 78 days' worth, and these cars have not yet been affected by tariffs. Once tariffed cars start to enter the market, a price increase across the board is certain—whether imported or domestically produced.

Conclusion: Don't wait, missing this wave will cost you more.