U.S. car buyers are likely to bear the brunt of Donald Trump’s tariffs, with car prices expected to rise significantly, according to consultancy firm AlixPartners. The firm warns that tariffs could add up to $2,000 to the cost of new vehicles, with manufacturers passing on approximately 80% of the added expense, an estimated $1,760 per vehicle, directly to consumers.
Mark Wakefield, Global Co-Head of Automotive at AlixPartners, stated that the tariffs have created “a big wall of cost,” disproportionately affecting buyers. This financial pressure comes as General Motors anticipates a $5 billion tariff-related impact this year, while Ford projects losses nearing $2.5 billion.
AlixPartners further cautioned that the U.S. government’s stance on electric vehicles (EVs), including reduced support for tax credits such as the $7,500 incentive, could undermine American competitiveness in the global EV market. The shift away from these incentives may discourage EV purchases, leading consumers to stick with more affordable petrol-powered vehicles.
In response, AlixPartners has lowered its projection for EV adoption in the U.S. by 2030, reducing the forecasted market share from 31% to just 17%. Conversely, sales of petrol vehicles are expected to climb to 50%, with hybrids rising to 27%.
The consultancy suggests this reversal could marginalize U.S. automakers in the international EV race, potentially increasing dependence on Chinese technologies. Wakefield warned that without strategic adjustments, American brands risk being left behind in the transition, becoming known more for legacy combustion engines than for innovation in clean energy mobility.
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