Least impacted vehicles still see tariff burden of $2,000-plus, while most impacted vehicles incur tariffs exceeding $12,000 — here’s what they are
East Lansing, Mich.—Amendments to the U.S. tariff policy contained in the proclamation of President Donald Trump on April 29 have resulted in new estimated costs of the U.S. and retaliatory tariffs imposed on a wide variety of new vehicles sold in the United States.
The estimated tariff costs, released by the Anderson Economic Group, under the adjusted policy are as follows:
1. Lower Impact Group — Reduced Tariff Costs: For certain vehicles assembled in the United States and with substantial U.S. content, the firm estimated tariff cost burdens of $2,000 to $3,000. The Honda Civic and Honda Odyssey, Chevy Malibu, Toyota Camry Hybrid, and Ford Explorer were in this group.
2. Medium Impact: Many vehicles will have an estimated tariff impact of between $4,000 and $8,000. Some Jeep and Ram truck models are in this category, as are the Chrysler Pacifica van, BMW X3, the Ford Bronco Sport, and the VW Jetta. With the adjusted policy, some Texas-assembled Chevrolet Suburban/GMC Yukon vehicles will have a tariff impact that the Anderson Economic Group estimates at just under $8000.
3. High Impact: Higher on the tariff impact list are full-size luxury SUVs, some BEVs, and products assembled in Europe and Asia. These vehicles are expected to see a tariff impact of $10,000 to $12,000, with some battery-electric vehicles and European and Asian luxury vehicles having an estimated tariff impact exceeding $15,000. Models in this group include Mercedes G-Wagon and other Mercedes sedans, Land Rover and Range Rover models, some BMW models, and the Ford Mach-e.
Reductions in Tariff Costs for Some Models
The April 29 proclamation reduces tariff costs for some vehicles assembled in the United States but does not eliminate tariff costs from any vehicle that the Anderson Economic Group studied. For vehicles assembled in other countries, including those assembled using substantial U.S. content, the new policy does not significantly reduce the cost of the automotive tariffs. Examples:
1. The Ford Mach-e (BEV crossover assembled in Mexico, list price of about $55,000) previously had a very high tariff exceeding $12,000. It will still have that very high tariff.
2. The Ford Explorer (SUV, assembled in Illinois, list price of about $50,000), previously had a tariff impact of about $4,300. That will drop to about $2,400.
3. The many variations of the Chevrolet Suburban/GMC Yukon/Cadillac Escalade that are assembled in Texas will see a reduced tariff impact. Under the previous policy, the firm estimated a tariff burden for a typical model at over $11,000. Under the new policy, it is estimated it will total just under $8,000.
According to the study’s lead author, Patrick L. Anderson, “The adjustments provide significant and beneficial softening of the cost impact of these tariffs, at least for US-assembled vehicles. However, the cost is still substantial for most American cars and trucks. We do not expect consumers to absorb tariff costs that are still above $4,000 for many models, and above $10,000 for luxury vehicles imported from Europe and Asia.”
Anderson goes on to observe that U.S. consumers have been taking no chances. “The sales surge in March confirms that Americans expect prices to go up because of tariffs, and the revised AEG estimates confirm they are right.”
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