CBS News: Denver economics professor weighs in on Trump's 25% tariffs on imported vehicles

April 7, 2025

One of the industries that will be impacted the most by President Donald Trump's tariffs is the auto industry. The president's 25% tariffs on imported cars took effect last week, with the tariffs also impacting imported car parts starting in May. That leaves a lot of questions for potential car buyers and people who already own vehicles.

Dr. Kishore Kulkarni, an economics professor at Metropolitan State University of Denver, said this is uncharted territory for the auto industry and will have a big impact on potential car buyers, who could end up paying thousands more dollars to buy a car in the months ahead.

"Without a doubt, cars will be more expensive next week than they are today," said Kulkarni. 

While Kulkarni said that while it's still hard to predict how much prices could go up, some other economists are saying car prices could rise $8,000 to $15,000 depending on if the car is made here or overseas.