It’s not hard to see how the Trump administration’s tariffs on imported cars, parts, and materials can increase prices on new cars from the imported Chevy Trax to the American-built Ford F-150. Companies will have to pay more up front to bring in any of those items, and that means companies have to raise prices on those products to cover their costs, leaving the consumer paying for them. It seems they may be affecting more than just new car prices, though. According to the Manheim Used Vehicle Value Index from Cox Automotive, used car prices are climbing, and they’re higher than they were more than a year ago. Cox Automotive’s Senior Director of Economic Industry Insights, Jeremy Robb, points to tariffs as a contributing factor due to increased volatility in car market pricing. We wouldn’t be surprised if the frequent delays to tariff implementation also contributed to that volatility.
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