The White House says tariffs won't make car buying more expensive. Top automakers don't sound as sure.

A top advisor to President Donald Trump said Americans won't pay more to buy a car as a result of Trump's tariffs.Anna Moneymaker/Getty ImagesStephen Miller said that Americans won't pay more to buy a car as a result of tariffs.Miller said that Trump's trade policies have incentivized automakers to boost domestic manufacturing.Ford's top executive recently said he could not promise consumers wouldn't pay more.Americans won't pay more to buy a car as a result of President Donald Trump's tariffs, the White House said on Thursday."No, not on cars they won't," White House deputy chief of staff Stephen Miller said in response to a question of whether consumers might have to pay more to buy a vehicle as automakers adjust their production to account for Trump's tariffs."Because again, there is now a massive economic incentive for automobile producers to expand production in the United States, and whatever they make here, there will be no tariff," he added.Consumers appear skeptical. Dealers are reporting a surge in demand as customers try to lock in a deal before potential changes.Economists aren't as convinced either.Anderson Economic Group, a Michigan-based consultant firm, estimates that even the least impacted vehicles could still see a tariff burden above $2,000. Some vehicles, according to their estimates, could have a tariff burden of up to $12,000. The exact estimate varies on whether the vehicle is assembled in the US and the percentage of American-made parts that go into it."If you are in the market for a new car and you find one you like, my advice is to buy it right away. If you have a used car you rely upon, my advice is to make sure it is well maintained as you are likely to use it for a while longer than you had earlier planned," said Patrick L. Anderson, the group's principle and CEO, said in a news release.Here's what the nation's largest automakers have said about tariffs and whether they'll raise prices.GMCEO Mary Bara said that tariffs could cost General Motors up to $5 billion. As for consumers, she said that the leader in U.S. auto sales will "stay competitive.""We have been able to maintain strong pricing and low incentives because customers want our vehicles," Bara told CNN. "What we've said and what we have provided in our guidance is that pricing is going to stay about at the same levels of what it is."Bara also did not outline any plans for GM to offer incentives along the lines of Ford's employee pricing promotion. She said that pricing in the auto industry changes "at least monthly and sometimes more frequently" and that GM would "respond to the market" to remain competitive.As for tariffs overall, Bara said one of the best ways GM can respond is to continue to boost the portion of each vehicle that is made in the US.ToyotaToyota, the US's second-best-selling automaker, is significantly exposed to tariffs.A UBS Securities report published at the outset of Trump's trade war said that tariffs could cost Japan's five biggest automakers $25 billion a year, mostly borne by Toyota, the world's largest automaker.Toyota is expected to benefit from Trump's decision on April 29 to rein in some of his auto tariffs. One of those orders allows automakers to claim an offset on auto parts tariffs if they produce and sell completed vehicles in the US. Toyota, like many of its competitors, imports parts that are then assembled into completed vehicles at its US-based plants.In late March, Reuters cited Japanese domestic media reports that Toyota did not plan on raising prices in response to tariffs.A Toyota spokesperson declined further comment to Business Insider.FordOn Wednesday, Ford CEO Jim Farley said he couldn't promise that US consumers wouldn't pay more to buy his company's vehicles."No, I'm not saying that," Farley told CNN's Erin Burnett when she asked if he would commit to saying there would be no price increases from Ford this summer.Instead, Farley announced that Ford, the nation's third-best-selling automaker, will extend its current sale, which offers employee pricing to consumers through July 4.HyundaiHyundai CEO Jose Muñoz recently said that he expected prices to remain steady."I don't expect to see a huge increase overnight," Muñoz told Bloomberg News on April 15. "The market will decide."Muñoz said that if price increases were to occur, they would likely not be imposed on lower-cost entry-model vehicles."Those customers are very sensitive to price," he said. "If you do that then maybe they won't buy the cars."Hyundai and its sibling Kia were the fourth best-selling automaker in the US in 2024.HondaHonda said early on that Trump's tariffs could have a significant effect on its bottom line.Global executive vice president Shinji Aoyama told analysts in February that a 25% tariff could cost the company $132.7 billion.The fifth-best-selling automaker in the US has since shifted production of its Civic Hybrid from Japan to the US.StellantisA historic member of Detroit's Big 3, Stellantis, formerly known as Chrysler, has also not said much about its tariff response.At a high level, Jeep and Dodge's parent company withdrew its 2025 financial guidance due to uncertainty around tariff policy.Like Ford, Stellantis has extended its employee pricing offering. According to The Detroit News, the program will now run through early June.Read the original article on Business Insider

Comments

Business News

I'm a financial expert - divorced women are missing out on millions thanks to 1 thing

Prince Harry said he wants 'reconciliation' with the royal family. Here's a timeline of his and Meghan Markle's tumultuous relationship with the royals.

about 5 hours ago

China claims an island in the South China Sea. Satellite images show Beijing's growing power-hungry struggle in the region.

about 7 hours ago

Amazon-backed creator startup Spotter lays off staffers. Read the memo from its CEO.

about 7 hours ago

Comments

Business News

I'm a financial expert - divorced women are missing out on millions thanks to 1 thing

Dove Cameron Wants To Be Drawn Like ‘French Girls’ On New Single

Today’s NYT Mini Crossword Clues And Answers For Saturday, May 3rd

Every UK supermarket opening time for this weekend's May bank holiday

IBS sufferers 'not rushing to the toilet' and feel 'less bloated' thanks to sachets

Subway drops below 20,000 US stores for the first time in 20 years as closures outpace growth

United Airlines axes dozens of daily flights at Newark Airport over delays, FAA walk-offs: ‘No other choice’

Britain’s biggest toy chain with over 160 UK stores to close town centre site for good TODAY

Today’s ‘Wordle’ #1414 Hints, Clues And Answer For Saturday, May 3rd

Maroon 5 And Lisa Team Up For ‘Priceless’ New Collab

Judge slaps down Trump's 'cringe-worthy' executive order targeting Perkins Coie

How major US stock indexes fared Friday, 5/2/2025

Musk's next task? Reviving Tesla in Europe where sales have plunged by more than half in a year

Steelmaker Cleveland Cliffs to idle 3 steel plants in Pennsylvania and Illinois

Trump administration asks Supreme Court to let DOGE access Social Security systems

Medical misdiagnosis cost NHS £376 million in claims including brain damage and cancer

What Time Is 2025 Kentucky Derby? How To Watch On Free TV And Streaming

How Tariffs Are Reshaping Retail Hiring Strategies

Newark Airport Is Experiencing Major Flight Delays. What’s Causing Them?

Meta partners with film studio Blumhouse on chatbot used during recent movie screening

Major pizza chain to temporarily SHUT 13 restaurants in UK after worrying review – is your local affected?

UK’s cheapest supermarket for 79 essentials revealed – it’s not Lidl, Asda, or Tesco

Hannah John-Kamen On Rematerializing As Ghost In ‘Thunderbolts*’

Cheapest supermarket for April 2025 named - and it's £48 less than most expensive

Why is the government bond market so powerful? This is Money Podcast

Prince Harry said he wants 'reconciliation' with the royal family. Here's a timeline of his and Meghan Markle's tumultuous relationship with the royals.

US scores Ukraine minerals for AI & EVs

Women face chaos trying to get a Real ID

Why it's so hard to find a public toilet

M&S supplier resorts to pen and paper after cyber attack

Self-driving trucks start making the rounds in Texas

Trump budget proposes to eliminate embattled Job Corps program

Trump budget includes cuts to FBI, DOJ

Six Flags America in Maryland to close at the end of 2025 season

A 'big scam'? The end of a shipping loophole on China goods and what it means for consumers

Ex-New Yorkers dish on why they moved to Florida for good: ‘People thought we were crazy’

Ex-Kohl’s CEO posted LinkedIn video of lover 3 months before scandal broke: ‘No wonder you got exposed’

NatWest’s profits jump by a third as bank’s return to privatisation could be weeks away

Full list of the DWP benefit errors that can lead to owing £1,000s – including ticking the wrong box

Well-Traveled Christian Elliss Grateful To Extend His Stay With Patriots

S&P 500 Notches Longest Winning Streak Since 2004 As Stocks Claw Back From ‘Liberation Day’ Crash

Iberian Blackout: Electrify Everything—and Have A Backup

MSNBC’s Ali Velshi On Trump’s Tariffs: ‘Make No Mistake, We All Feel It, Eventually’

What To Watch This Weekend: New Shows And Movies To Stream On Netflix, Hulu, Prime Video, Apple TV And More

The 7 Best New Movies On Netflix In May 2025

Trump Administration Plans Massive Military Parade On President’s 79th Birthday

Ryan Garcia Vs. Rally Romero Results Full Fight Card Results

Will Warren Buffett Address Trump’s Trade War? Mogul Set To Speak At Annual Berkshire Hathaway Meeting

Russia Is Making Explosive Drones Out Of Toy Hoverboards

Co-op 'very sorry' after hackers access members' data

RAY MASSEY: Vauxhall's new Mokka serves up a tasty treat

Fantastic Footsie in record-breaking run

City bankers sweat over trade turmoil

Shell boss: I'd snap up my shares before BP

Shipping broker Clarkson hit by ninth pay revolt

ALEX BRUMMER: Labour's paralysis on growth is galling

We shopped the new Gap x Dôen collab and only found one piece worth splurging on

Trump blamed Biden for a down market. 2 days later, stocks are soaring.

China claims an island in the South China Sea. Satellite images show Beijing's growing power-hungry struggle in the region.

Amazon-backed creator startup Spotter lays off staffers. Read the memo from its CEO.