Tariffs Set Stage for 2026 Auto Price Increases, With Foreign-Built Models Hit Hardest

Overview

• Sonic Automotive president Jeff Dyke said manufacturers have begun passing on costs and warned broader increases could accelerate into summer.
• The Supreme Court voided certain IEEPA-based levies last week, yet Toyota said Section 232 tariffs that cover many vehicles and parts remain intact.
• CatalystIQ’s VIN-level data show Canadian-built models up nearly 10% since October—about $4,000 on average—with Japan, Germany, and Mexico also higher while South Korea dipped.
• US-assembled vehicles largely sidestepped comparable hikes and are projected to exceed 55% of U.S. sales this month, up four points year over year.
• Automakers have absorbed sizable tariff costs, pushing EBIT margins down to 3.9% through the first three quarters of 2025 as federal tariff receipts neared $125 billion since Oct. 1.