Automakers Warn of Price Surge Amid Tariffs

A trade group representing leading automakers warns that new 25% tariffs on imports from Canada and Mexico, imposed by President Trump, will lead to significant price increases. The Alliance for Automotive Innovation predicts the cost of certain vehicle models may rise by 25%, affecting availability and prices immediately.

A leading industry trade group sounded the alarm on Tuesday as new tariffs imposed by President Donald Trump threaten to drive vehicle costs higher. The organization, representing nearly all major automakers, cautioned against the recently introduced 25% tariffs on imports from Canada and Mexico.

John Bozzella, head of the Alliance for Automotive Innovation, expressed concerns that all automakers would suffer from these new tariffs. "Most anticipate the price of some vehicle models will increase by as much as 25%," he stated, highlighting the immediate negative impact on both pricing and vehicle availability.

The announcement has raised alarms across the automotive industry, prompting fears of significant cost hikes for consumers and disruption in the market. Stakeholders are calling for urgent measures to mitigate these economic pressures.

(With inputs from agencies.)