Auto Tariffs Tsunami: How 25% Tariffs Will Change American Car Markets

Something massive is about to shift in the American automotive marketplace. Starting next Wednesday, 25% tariffs will hit vehicles and parts imported from Canada, Mexico, Europe, Japan, and essentially any foreign country—and these will stack on top of existing tariffs.

Our conversation with Aiden Bergsman from the Anderson Economic Group reveals just how complex this situation is becoming. Modern vehicles aren't simply built in one country—components cross borders repeatedly during manufacturing. That engine in your Chevy might have started in Canada, crossed to Detroit, had Mexican parts added, then crossed back to Canada before returning as a finished vehicle. Each crossing potentially triggers tariffs, and Bergsman's analysis suggests these could raise vehicle prices by $3,000-$10,000, with EVs potentially seeing even steeper increases.

Manufacturers face impossible choices: absorb unsustainable costs, pass them to already-stretched consumers, frantically relocate production to the U.S., or discontinue certain models entirely. Meanwhile, dealers are stockpiling imports before the deadline hits. The situation is particularly threatening for models exclusively built in Canada or Mexico that don't sell in high volumes—these might simply disappear from the market.

Beyond tariffs, we explore the alarming 16% increase in auto loan fraud (now $9.2 billion annually) and share news about Hyundai's massive $6 billion steel mill investment in Louisiana, part of their $21 billion U.S. manufacturing expansion. This strategic move has earned them an exemption from the upcoming tariffs, demonstrating one way forward in this challenging new landscape.

Whether you're planning to buy a vehicle soon or simply want to understand how these economic shifts will affect the automotive world, this episode provides crucial insights into what might be the biggest shake-up in car manufacturing and pricing in decades. Subscribe now and join us for our upcoming live broad

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