Study: Tariffs would add $4,400 to car prices

Friday, July 13, 2018, Vol. 42, No. 28

WASHINGTON (AP) — Imposing a 25 percent tariff on auto imports would raise the price of the typical new car sold in the United States (now about $35,000) by $4,400 — $2,270 for U.S.-built cars and $6,875 for imported cars and trucks, according to a study released Thursday by the Center for Automotive Research.

"New tariffs or quotas would also reduce competition and consumer choice; increase the cost of used vehicles; and raise the cost of getting vehicles serviced and repaired," says Peter Welch, president of the National Automobile Dealers Association, which commissioned the study.

Welch says the tariffs would push the average new-car payment to $611 a month from $533 a month (over 69 months on average).