Tariffs Have Pushed the Average New Car Price Higher in 2026

Yes — tariffs are pushing car prices up, but by less than the original headline rate suggests, because dealers and automakers are still absorbing part of the cost and trade deals have lowered some rates. The average new car hit a record of about $50,326 in late 2025, and Kelley Blue Book estimates tariffs could add up to $6,000 to vehicles priced under $40,000.

How much tariffs have actually added

• Import tariffs now run 15-25% by origin — 15% on cars built in Europe, South Korea, and Japan after trade deals, with higher rates on others
• New car prices are up about 10% year over year, per Kelley Blue Book
• Average new-car transaction price reached a record ~$50,326 in December 2025
• Buyers are paying about 5.9% more on average across model-year 2025-2026 vehicles
• KBB estimates up to $6,000 added on cars priced under $40,000
• Imported models are seeing roughly 10% price increases
• Toyota alone projected about $9.1 billion in tariff costs for its fiscal year

Which cars are least affected?

US-assembled vehicles are partially insulated, because the tariff hits imported cars and imported parts — not domestic final assembly. A US-built trim of the model you want can cost meaningfully less than an imported version, and several brands have held prices steady by absorbing the cost rather than passing it through.

What buyers should do

Ask exactly where the car you want is built, compare a US-assembled rival, and get the out-the-door price in writing. If your top pick is imported, lock pricing now before further increases. Judge the deal on the total price, not the monthly payment — that is where tariff costs hide.