The automotive industry is still navigating the complexities of tariffs and trade policies, particularly those initiated during the Trump administration. The potential consequences are far-reaching, and experts are cautiously assessing the likely outcomes.
Should tariffs be implemented for an extended period, automotive prices are poised to rise, particularly in the short term. The focus isn’t on if prices will increase, but by how much. David Kelleher, owner of David Auto Group near Philadelphia, discussed the potential effects on Fox Business, stating that truck prices could surge by as much as $20,000. He cited the example of a high-end Ram pickup, which could jump from around $80,000 to $100,000.
Ram is especially vulnerable to trade restrictions. The brand manufactures its heavy-duty pickups and ProMaster vans at its Saltillo Assembly Plant in Mexico. High-end versions of these trucks can already reach $80,000, and if tariffs of 25% are imposed on Mexican imports, the $100,000 estimate could become reality.
Long-term tariffs could incentivize manufacturers to move more production to the United States. For instance, Honda reportedly adjusted its plans to shift Civic production to Mexico. The Ram 1500, which accounts for most of Ram’s sales volume, is assembled in Sterling Heights, MI, making it the second-most “American-made” full-size pickup, behind the Toyota Tundra. However, the 3.0-liter inline-six Hurricane engines used in a significant portion of the 2025 Ram 1500 lineup are built in Saltillo and would be subject to tariffs, not to mention the impact on smaller components and raw materials that also cross the border.
While a precise calculation of how tariffs would affect Ram truck production costs isn’t available, the figures being discussed are noteworthy. A report from the Anderson Economic Group predicts an $8,000 increase in pickup truck prices. Furthermore, industry trade groups suggest that prices on some vehicles could rise by as much as 25 percent. Potential price increases could also be hidden through higher destination and handling charges, or by eliminating incentives that would otherwise be available.
The persistence of tariffs could lead to the shutdown of a significant portion of American automotive production. While tariffs might encourage more domestic production, which would be a positive outcome, it could also mean consumers will have fewer vehicle options and pay more for them overall.
