Auto tariffs, that are anticipated to cut back gross sales by thousands and thousands, value 100 billion US {dollars}

Auto worker in the Smyrna Vehicle Assembly of Nissan in Tennessee, June 6, 2022.

Michael Wayland / CNBC

Detroit-like President Donald Trumps 25% tariffs for imported vehicles, despite a retreat this week, are in force to other country-based taxes, analysts expect massive global effects on the automotive industry due to the guidelines.

According to research reports from Wall Street and Automotive analysts, a decline in vehicle sales in millions, higher new and used vehicle prices and increased costs of more than 100 billion US dollars for the industry await you.

“What we see now is a structural shift that is driven by politics that is probably durable,” Felix Stellmaszek, the global lead of the Boston Consulting Group in automobile and mobility, told CNBC. “This is perhaps the most consistent year for the auto industry in history – not only because of the immediate cost pressure, but also because it forces fundamental changes in the way the industry builds up.”

BCG assumes that the tariffs add $ 110 to $ 160 billion on an annual cost basis in the industry, which could affect 20% of the market for new vehicles in the United States and increases production costs for both US and non-US-American manufacturers.

The Center for Automotive Research, a non-profit Think tank based in Michigan, believes that the costs for car manufacturers in the United States alone will increase by $ 107.7 billion. This includes 41.9 billion US dollars for Detroit's car manufacturers General MotorsPresent Ford engine and Chrysler parent Sternantis.

Both analyzes take into account the 25% tariffs for imported vehicles that Trump implemented on April 3., as well as the upcoming taxes of the same amount for automotive parts, which should begin by May 3.

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Car manufacturers and suppliers may be able to carry some of the cost increases, but it is also expected to pass them on to US consumers, which, according to the analysts, could reduce them again.

“We believe that the proposed tariffs will increase the costs for the import and manufacture of vehicles in the USA on average by at least one low to medium -sized thousand thousand dollar level, and we believe that it will be difficult for the auto industry to say goodbye, especially with a soft consumer question more generally”.

Goldman Sachs assumes that the new vehicle network prices in the United States will increase by around $ 2,000 to $ 4,000 in the next six to 12-month time frames in order to better reflect tariff costs.

Car manufacturers reacted to the tariffs in different ways. Manufacturers who are largely domestic, such as Ford and Stellantis, have announced temporary offers for the pricing of the employees, while others, such as the British car manufacturer Jaguar Land Rover, have hired US programs. Hyundai Motor has also announced not to increase prices for at least two months in order to facilitate consumer problems.

The consumer mood was expected even worse than in April, since the expected inflation level has reached the highest place since 1981, as a closely observed survey by the University of Michigan showed on Friday.

Sam Abuelsamid, Vice President of Insights at the Telemetry car consulting company, expects many car manufacturers to have at least two-month range of non-talent-affected vehicles that they can sell before they have to increase prices due to tariffs.

Telemetry expects the higher costs of production, parts and other factors to lead to over 2 million fewer vehicles in the USA and Canada, which will affect the broader economy.

“A few sales of sales in one unit are widespread,” said Abuelsamide. “This is driven by higher prices, not only by vehicles, but all the line … which will restrict people's purchasing power.”

The affordability of new and used vehicles has been a problem for several years. On average, Cox Automotive costs that new vehicles cost almost 50,000 US dollars. This number does not include the costs for the financing of such a vehicle that has increased significantly in recent years to combat inflation.

The car loan rates remain for a new vehicle and almost 15% for a used car or a truck for a new vehicle and almost 15% for a used car or a truck.

“We assume that a declining discounting and then accelerated price increases in the implementation of the tariffs and the tightening of the offer will be recorded, which leads to price increases in all types of most new vehicles,” said Jonathan Smoke, Chief Economist from Cox Automotive, Jonathan Smoke during a virtual event on Monday. “In the long term, we expect production and sales to fall, the newly used prices will rise and some models are eliminated.”

The expected price increases vary due to the vehicle, but COX estimates that the cost of imported vehicles by $ 6,000 due to the 25% tariff for non-US vehicles and $ 3,600 for vehicles that are gathered in the USA, these are increased due to previously announced tariffs for steel and aluminum.