U.S. tariffs on Canadian and Mexican goods will hike prices of North American-produced vehicles by as much as $10,000 each, a consultant said.

President Donald Trump suggested imposing tariffs on auto imports, threatening to drive up the cost of cars further amid plans for tariffs on steel, aluminum, Canada, and Mexico. But economists and the insurance industry say that this will raise auto insurance costs.

February 2025 began with President Donald Trump instituting his long-promised tariffs on America’s trading partners Canada and Mexico. Tariffs are, essentially, taxes levied upon countries that import goods to the United States,