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Starting tomorrow, American car buyers could experience sticker shock as new tariffs on imports from Canada, Mexico, and China take effect.

The 25% tariffs on vehicles and parts from Canada and Mexico, along with a 10% tariff on Chinese imports, may push car prices up by as much as $12,200, according to a report from the Anderson Economic Group (AEG), a Michigan-based consultancy, CBS News said.

The tariffs, aimed at addressing concerns over immigration and trade, are expected to heavily impact vehicles with significant North American content.

Ford models like the Bronco Sport and Maverick, both built in Mexico, could see price hikes of up to $8,000.

High-end SUVs with major components sourced from Mexico may rise by nearly $9,000, while electric crossovers relying on Chinese-made parts could cost an additional $12,200.

Ford, one of the automakers most affected, is already moving parts across the Canadian border in a bid to minimize immediate disruptions. Typically, vehicle components cross borders multiple times before final assembly, meaning each crossing will now be taxed, driving up costs.

Ford CEO Jim Farley warned, "This will blow a hole in the US industry that we have never seen." He added that prolonged tariffs would eliminate billions in industry profits, raise vehicle prices, and impact American jobs.

Industry analysts predict that higher prices could push consumers toward used cars or non-tariffed imports from Japan and Korea.

Trump's Tariffs Could Hit His Own Voters Hard with Soaring Truck Prices

The impact is expected to hit Trump's voter base particularly hard. While Tesla, led by Trump ally Elon Musk, produces most of its cars domestically and will be minimally affected, traditional truck buyers—many of whom supported Trump—are likely to see major price increases on vehicles like the Ford F-150 and Chevrolet Silverado.

According to Gizmodo, Trump has defended the tariffs as a move to bring manufacturing back to the US "Massive amounts of auto manufacturing will return to Michigan," he wrote on social media. However, experts argue that supply chains are too deeply intertwined for production to shift quickly.

The new tariffs follow the collapse of a $25 billion merger between Kroger and Albertsons and add further pressure to an economy already grappling with inflation.

While Canada and Mexico attempted to negotiate by increasing border enforcement measures, Trump remained unsatisfied, confirming the tariffs would take effect on March 4.

The tariffs also pose a challenge to the electric vehicle industry. Chinese EV manufacturers continue to gain global market share, while US companies struggle to maintain momentum.

Tesla's sales have dipped, particularly in Europe, though Musk's company remains better positioned than competitors who rely on outsourced parts.