New tariffs have pushed average new car prices up by nearly 10% in 2026. Imported vehicles, especially from certain countries, have seen the biggest increases. Here’s what’s happening and which cars are now more expensive.
Why Prices Are Rising
Recent tariff hikes on imported vehicles and components have forced automakers to raise sticker prices. European, Korean, and Chinese-made vehicles have been hit hardest. Even some American-made cars with imported parts have seen price increases.
Cars That Got Significantly More Expensive
- European Luxury Brands (BMW, Mercedes, Audi, Porsche, Volkswagen) — Many models saw 8–12% price increases due to high tariffs on European imports.
- Hyundai and Kia — Several popular models, including the Tucson, Palisade, and Telluride, saw noticeable price hikes.
- Tesla Models (some trims) — While mostly built in the US, certain components and imported variants became more expensive.
- Mazda, Nissan, and Subaru — Moderate increases across their lineups due to imported parts.
Which Cars Saw Smaller Increases
- Toyota and Honda — Strong domestic production helped keep price increases relatively modest (3–6%).
- Ford, Chevrolet, and Ram Trucks — American-made trucks saw smaller increases compared to imported SUVs and sedans.
- Genesis — Some models saw moderate increases but remain competitive.
What This Means for Buyers
The tariff-driven price increases are making new cars more expensive at a time when many buyers are already feeling financial pressure. This is pushing more people toward certified pre-owned vehicles, leases, and strong negotiation.
Best Strategies Right Now
- Negotiate harder — dealers still have room to move on many models.
- Consider domestic or hybrid models that were less affected.
- Look for current incentives and end-of-month deals.
- Strongly consider certified pre-owned vehicles to avoid the new price hikes.
The Bottom Line
New car prices have risen noticeably in 2026 due to tariffs, with some models jumping by nearly 10%. European luxury brands and several imported models have been hit hardest. Smart buyers who shop carefully and negotiate well can still find reasonable deals, but the overall market has become more expensive.
If you’re shopping for a new vehicle this year, make sure you understand how your ZIP code affects car insurance rates in 2026 — the difference can be huge. And check our guide on best cars to buy in July 2026 for current deals and incentives that can help offset the price increases.
Have you noticed higher prices at dealerships? Which car are you considering? Share your experience in the comments below.
