Finding an affordable car in the U.S. is already tough, but President-elect Donald Trump’s proposed tariffs on Mexico and Canada might make it even harder. Many budget-friendly cars, like the Nissan Sentra and Ford Maverick, are made in Mexico. In fact, nearly one-third of cars sold in the U.S. under $30,000 come from there! But with a proposed 25% tariff, these prices could skyrocket.
Why Mexico? It’s simple: manufacturing cars there saves automakers money. Small cars and SUVs, which already have tight profit margins, are cheaper to produce in Mexico. Without this option, companies would face higher costs, and guess what? Those extra costs would land on your bill.
Kia, for example, relies on Mexico to make popular models like the Forte. If tariffs happen, cars like these could jump in price, making them less accessible. Honda’s bestselling Civic, made partly in Canada, could also face a similar fate.
The timing couldn’t be worse. Today, the average monthly car payment is already a steep $700, up from $500 in 2016. Many buyers are shifting to smaller, cheaper cars—exactly the ones most affected by these tariffs.
If tariffs move forward, prices could rise by an average of $3,000 per car, making the dream of owning a new car feel out of reach for many Americans. Whether automakers shift production back to the U.S. or keep paying tariffs, one thing’s clear: consumers will pay the price.
So, will affordable cars disappear? Only time will tell.
