Trump's proposed tariffs could raise US car prices by over $2,100, Wells Fargo warns

Donald Trump plans to impose a 25% tariff on imports from Canada and Mexico, which could raise the price of US-assembled cars by an average of $2,100, according to Wells Fargo. This marks a significant shift in trade policy. Mexico's President Claudia Sheinbaum has stated that her country would retaliate with its own tariffs, potentially affecting joint ventures with US automakers like General Motors, Stellantis, and Ford. About 76% of vehicles made in Mexico are exported to the US. Wells Fargo estimates that vehicles produced entirely in Canada and Mexico could see price increases of $8,000 to $10,000. This could lead to substantial financial risks for major US automakers, with potential earnings impacts between $5 billion and $9 billion.