Tariffs are likely to push auto prices higher. Should you buy a new car now?

Buying a car can be a fraught financial decision even in the best of times. Now, car shoppers are facing the added pressure of deciphering U.S. tariff policy. 

On Wednesday, President Trump issued a one-month delay for U.S. automakers on tariffs placed on imports from Canada and Mexico, trading partners that provide many of the car makers' vehicle parts and components. If the 25% levies are enacted, auto manufacturers will face higher costs and are likely to pass on some of those price hikes to consumers, industry players say. 

The upshot, according to experts, is that consumers who are thinking of buying a car in the next year may want to consider buying a car sooner in 2025 rather than later. If the tariffs eventually take effect, car prices could rise by between $2,000 and $12,200 for some models, according to a recent estimate from Anderson Economic Group (AEG), a Michigan-based economic consultancy.