US EditionPublished • loading... • Updated
Car prices are going up, but how much of it is from tariffs?
Automakers are raising average 2026 vehicle prices by nearly $2,000 and increasing destination fees due to tariffs and rising costs, while some models face feature reductions.
- Earlier this year, automakers began raising 2026 model MSRPs and trimming slower-selling models as they shift from absorbing costs amid Trump administration tariffs, Cloud Theory found average price rises near $2,000.
- J.P. Morgan's estimates show tariff costs are sizeable, with $41 billion in year one, while destination charges rise $200 to $300 and policy adjustments ease tariff impacts.
- This year, 23 models have at least a $2,000 price hike, and the average monthly payment is now $766, according to Edmunds.com Inc., up more than 3%.
- Automakers are offsetting costs by removing features and trims as a record share of subprime borrowers fall behind on loans, while tariffs raise costs in dealership parts and service departments.
- The bank projects a modest, shared price increase of about 3% as automakers and consumers split the tariff burden, while analysts say 10%–15% hikes are unlikely due to market demand constraints.
Insights by Ground AI
24 Articles
24 Articles
The Detroit News+23 Reposted by 23 other sources
Car prices are going up, but how much of it is from tariffs?
·Detroit, United States
Read Full ArticleCoverage Details
Total News Sources24
Leaning Left2Leaning Right0Center17Last UpdatedBias Distribution89% Center
Bias Distribution
- 89% of the sources are Center
89% Center
11%
C 89%
Factuality
To view factuality data please Upgrade to Premium
