<ul><li>The average new car price in America is predicted to increase by 7 percent or around $3,600 as a result of the 25 percent tariffs on imported vehicles.</li><li>Automakers can expect a 30 percent decline in earnings before interest and taxes (EBIT) this year due to the tariffs, and smaller EV makers will be hit hard.</li><li>Tariffs go into effect on April 3, and automakers have stockpiled inventory to prepare. However, the costs of tariffs are expected to start impacting their bottom lines after the inventory is depleted.</li><li>Carmakers have a choice to hike prices or keep volume in response to the tariffs. Passing on the full cost of the tariffs will result in a 10 percent decline in volume on average, with compact SUVs and small cars being the hardest-hit segments.</li></ul>

Car Prices Will Go Up by Thousands Thanks to Tariffs, Say Analysts

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