Trump's Tariffs Finally Hit Global Auto Markets As Car Prices Increase

• US President Donald Trump increased tariffs across different markets within weeks of resuming office, causing global unrest
• The 25% tariff imposed on the automobile market is now affecting the prices of US cars, a report has shown
• This is the highest month-on-month price increase recorded since March and April 2020, where factory shutdowns triggered a price increase

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

After more than 100 days in office, President Donald Trump’s tariffs have finally hit the global auto markets.

Data released on Monday, May 13, 2025, showed that car prices have increased, with automakers adjusting the price stickers in response to the 25% US tariffs on vehicle imports.

Major trading partners from Mexico and Canada are not left out, and brands like Hyundai, Ford and Stellantis are rolling out deals to keep sales flowing and avoid panic among buyers.

Despite discounts and promotions, the average price consumers paid for cars increased by 2.5% from March to April 2025, more than double the usual 1.1% increase observed between these months in previous years.

The only difference, according to Cox Automotive’s Kelley Blue Book, was in 2020 when prices rose 2.7% from March to April, induced by the Coronavirus pandemic shutdown.

Cox adds that even with the buyers rushing to buy ahead of the tariff-related price increase, they still had to spend more than average at the car dealership.

Japan's Honda has projected a 70% drop in profits, citing the impact of U.S. tariffs.

Trump's tariffs: Price of US cars increases

Reuters reported that dealers in the US, including Ford, are already charging more for products built outside the US, in countries like Mexico.

For instance, some models of the Maverick pickup, Mustang Mach-E electric SUV, or Bronco Sport will cost up to $2,000 more than similar cars built in the US.

Trump's tariffs: Price of used cars increases

The Cox Manheim Used Vehicle Value Index indicates that wholesale prices for used vehicles rose by 2.7% from March 2025 and by 4.9% from April 2024.

Recall that the Nigerian government announced plans to regulate the importation of used cars, aiming to prevent the country from becoming a dumping ground for substandard vehicles.

FG to encourage local car production

A major industry shakeup is about to hit the automobile industry in Nigeria as the government unveiled strategies to clamp down on unregulated importation of used cars.

The Director General of the National Automotive Design and Development Council (NADDC) has explained the strategies.

The government has also unveiled plans to boost local car production and assembly in Nigeria, aiming to reduce reliance on imports.

Used car imports drop amid high inflation

Legit.ng previously reported that the importation of used cars has declined due to the FX-driven increase in prices.

Dealers complained that it now takes longer to sell a vehicle, and they often had to take profit cuts to sell it in time.

NBS foreign trade report shows that the value of imported vehicles dropped by 14% in 2024, while the volume declined even more.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng