Just minutes after President Donald Trump announced sweeping new auto tariffs, the topic surged to the top of Google search trends. The reason: confusion, concern, and a flood of questions from car buyers, dealers, and automakers alike. Trump’s announcement of up to 25% tariffs on imported vehicles marks one of the most aggressive moves yet in his efforts to reshape American trade policy.

“What we’re going to be doing is a 25% tariff for all cars that are not made in the United States,” said Trump during a press conference in the Oval Office. “We start off with a 2.5% base, which is what we’re at, and go to 25%.”

The announcement is part of a broader package of reciprocal tariffs set for April 2, which Trump has promised would target the countries contributing most to the U.S. trade deficit.

Will Toyota be affected by tariffs?

In short: yes, Toyota will be affected. Although Toyota assembles many of its vehicles in the U.S., it is still part of an integrated North American and global supply chain.

“All automakers will be impacted by these tariffs on Canada and Mexico,” said John Bozzella, head of the Alliance for Automotive Innovation, which represents most major carmakers in the U.S., including Toyota, General Motors, Ford, Hyundai, Volkswagen and Stellantis. “Most anticipate the price of some vehicle models will increase by as much as 25%, and the negative impact on vehicle price and vehicle availability will be felt almost immediately.”

Toyota assembles models like the Tacoma in Mexico, and the company imports a variety of parts from Canadian and Japanese facilities. Those supply routes will now be exposed to new tariffs unless exemptions are later introduced.

How will tariffs affect car prices in the U.S.?

One of the top concerns on Google now is: how will tariffs affect car prices? The answer is alarming for consumers. According to Cox Automotive, if tariffs are applied without exceptions to imports from Mexico and Canada, car prices could jump by $3,000 for U.S.-built vehicles and $6,000 for models made in Mexico or Canada.

Some experts estimate the price hikes could be even higher when accounting for added costs from auto parts tariffs. The Center for Automotive Research predicts that the U.S. could lose thousands of jobs and see a major disruption in production due to the industry’s heavy reliance on international suppliers.

Cox Automotive warns that by mid-April, the tariffs could reduce North American auto production by 20,000 vehicles per day, about a 30% cut to current output.

How much will car prices go up with tariffs?

Many consumers are now asking: how much will car prices go up with tariffs? The estimate ranges from $3,000 to $12,000 per vehicle, depending on where the car is built and how many foreign components it contains.

Take, for instance, the Honda Civic, which uses a U.S.-built engine and a transmission built in Mexico, but is assembled in Canada. That’s a complex recipe of import taxes. Or consider the Buick Enclave, whose engine is made in Mexico and transmission in the U.S., but is assembled domestically — GM will now pay 25% on the Mexican-made engine and any other foreign components.

Even “American-made” vehicles like the Ford F-150, known for its heavy aluminum body, may get more expensive as the tariffs also apply to steel and aluminum imports, not just finished cars.

Why are even U.S.-assembled cars impacted by tariffs?

Many Americans assume that a vehicle assembled in Michigan or Texas is immune from tariffs — but that’s not how the modern supply chain works. Most U.S.-assembled cars rely on a web of imported parts.

Auto parts often cross borders six or more times before final assembly. Suppliers like Magna (Canada) or Bosch (Germany) serve U.S. factories with components manufactured in China, Mexico, or elsewhere. Smaller suppliers — called Tier 2 and Tier 3 — may not be able to absorb the 25% extra cost, meaning these tariffs are likely to hit consumers hard.

Can automakers avoid the tariffs?

Some car companies are preparing contingency plans. Ford said it may shift production to U.S.-based plants. Honda, which builds Civics in both Japan and Canada, may ramp up production in Japan, where tariffs haven’t yet been announced. Analysts say many manufacturers have stockpiled inventory built in tariff-free countries over recent months in anticipation of this policy shift.

Still, the logistical and financial challenges are enormous. “All manufacturers are going to be impacted — even those who are building vehicles in the U.S. have some content from Canada and Mexico,” said Michael Robinet, VP of forecast strategy for S&P Global Mobility.

With information from Reuters and US News