Industry expert: Trump tariffs on auto imports could raise car prices by $5K

A top vehicle manufacturer consultant says that the cost of new cars and trucks in the U.S. could spike by up to $5,000 if President Trump decides to impose tariffs on foreign automobiles.

Jeff Schuster, the senior vice president of forecasting at LMC Automotive, told USA Today that a 25 percent tariff on the imports would probably cause prices for each vehicle to rise by about $4,000 to $5,000.

{mosads}”If you put that kind of a tariff on a vehicle or an industry, prices are definitely going to go up on average. There’s no way around that,” Schuster told USA Today.

Car manufacturers have warned the Trump administration against imposing the tariffs, with both General Motors and Mazda saying the measures would cause price increases for consumers.

Trump tweeted last month that the U.S. will impose a 20 percent tariff on cars imported from European Union countries “if [EU] Tariffs and Barriers are not soon broken down and removed.”

He ordered the Commerce Department in May to investigate whether he can use national security to justify placing 25 percent tariffs on imported vehicles.

The EU threatened to slap tariffs on $294 billion worth of U.S. goods if Trump follows through with his automobile tariffs.

Trump implemented hefty tariffs on aluminum and steep imports earlier this year, including for key allies such as the EU, Mexico and Canada. The countries have responded with retaliatory tariffs on U.S. goods.