automotive

Honda CR-V To Chevy Trax Prices Rise Sharply Due To President Trump's Import Tariff Rules

Car prices in the United States (US) are expected to soar sharply after President Donald Trump imposed a 25 percent import tariff on vehicles sold in the US. 

Cox Automotive predicts that there will be an increase in car prices in the US starting from an average of US$3,000 or Rp49 million. Meanwhile, cars imported from Canada or Mexico will have a selling price increase of US$6,000 or Rp99 million per unit. 

Luxury car brands such as Bentley or Ferrari may be able to pass on the cost burden to their consumers. 

However, automotive manufacturers with thin margins such as Honda and General Motors (GM) will have a harder time dealing with the import tariffs imposed by Trump. 

Honda's SUVs such as the Honda CR-V and Honda HR-V as well as GM's SUVs such as the Chevy Trax, Subaru Forester, and Chevy Equinox will also be affected by Trump's import tariff policy. 

“Manufacturers know there are some vehicles that can survive on smaller margins, but the Honda CR-V, Chevy Trax, Subaru Forester, Chevy Equinox and Honda HR-V may be too expensive to sell,” said Erin Keating, an analyst at Cox Automotive. 

Currently, some U.S. dealers still have enough inventory to last about 90 days, but prices are expected to rise after that. 

Eric Mann, sales manager at the Szott M-59 Jeep dealership in Michigan, said more customers are buying because they are worried about higher prices. 

But once the tariffs go into effect on April 2, demand in the U.S. is likely to shrink as some low-priced models aimed at first-time buyers are likely to be discontinued because their prices are less competitive. 

S&P Global Mobility estimates that annual U.S. auto sales will fall to 14.5 million to 15 million units in the next few years from 16 million units in 2024. 

Donald Trump has imposed a 25 percent tax on car imports entering the U.S. market, effective April 2, 2025. 

He did not specify whether the tariff would target specific countries. 

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