How significant is the impact of Trump's auto tariffs? Goldman Sachs: The average price of new cars in the U.S. may increase by $15,000

Goldman Sachs believes that Trump's auto tariffs could lead to a surge in new car prices in the United States by $5,000 to $15,000. This move will directly affect half of the best-selling models in the U.S. market, especially affordable models priced below $30,000. According to CCTV News, U.S. President Trump signed a notice at the White House on March 26, announcing a 25% tariff on imported cars, with the related measures set to take effect on April 2. Trump also stated that the auto tariffs would be permanent. This marks a significant escalation in the "tariff war" following the U.S. tariffs on global steel and aluminum products. Goldman Sachs automotive analyst Mark Delaney issued a warning on Friday: Imposing a 25% tariff on imported cars could increase (car) prices by $5,000 to $15,000 (assuming the affected cars are valued between $20,000 and $60,000, although we acknowledge that some vehicles may fall outside this range). Estimates from automotive industry solution provider Cox Automotive indicate that these tariffs will directly impact half of the 50 best-selling models in the U.S. Affordable Cars Priced Below $30,000 May Be the Biggest Casualties Car prices have already risen to levels that many Americans cannot afford. Erin Keating, an executive analyst at Cox Automotive, stated in a report: For these buyers, it will be a real struggle. We only expect prices to rise, and incentives to disappear. Some models may vanish. There are 20 models priced below $30,000 in the U.S. market, and according to Cox, at least half of them will be severely impacted by the new tariffs. For vehicles assembled in Canada or Mexico, costs will increase by an average of $5,855. The impact on affordable cars may render many of them no longer viable in the U.S. market. Even luxury car manufacturers are not immune to this tariff storm. Ferrari stated in a statement that it may raise prices by 10% to reflect the higher tariffs. Ferrari reiterated its financial outlook for 2025 but noted that EBIT and EBITDA margins may face a risk of a 50 basis point reduction