Car prices are expected to skyrocket by as much as $12,000 due to President Donald Trump's tariffs on Canada and Mexico, according to industry experts. The tariffs, which were imposed earlier this week, will have a significant impact on the auto industry, with some models potentially disappearing from showrooms altogether.

The one-month reprieve for the auto industry, announced by Trump administration officials, provides a temporary delay, but experts agree that the tariffs will have a devastating effect on the industry if they remain in place. With around 5.3 million vehicles built in Canada and Mexico, 70% of which are destined for the United States, the tariffs will have a significant impact on the industry's supply chain.

Automakers have warned about the catastrophic effects of the tariffs, with Ford CEO Jim Farley stating that a 25% tariff across the Mexico and Canadian border will "blow a hole in the US industry that we have never seen." This could lead to a historic decrease in vehicle production in the US, Canada, and Mexico, potentially by as much as a third of the vehicle output in all three countries.

The average transaction price for new vehicles is already at a record high of $48,118 in January, according to Edmunds. With the tariffs in place, the average list price of new vehicles in the US could increase by over 7%, from $49,800 to $52,500, according to CarGurus. Top-selling models, including the Toyota Tacoma, Chevrolet Equinox, Toyota RAV4, Chevrolet Silverado 1500, and Honda HR-V, could all see major price increases.

Analysts have sifted through component costs for specific US-made vehicle models to see how tariffs could even impact domestically assembled vehicles. Anderson Economic Group concluded that the tariffs could boost manufacturing costs by $4,000 to more than $10,000 per car, depending on the vehicle model. Battery-electric crossover SUVs could see the biggest spike of $12,000, according to the group's analysis.

Auto dealers, many of whom are Trump supporters, are left to reckon with the repercussions of the president's trade war. In a recent interview with Fox, a Philadelphia-based Ram dealer called the tariffs "traumatic," recounting the experience of a customer who ordered a $80,000 truck, only to abandon the purchase after the price went up by $20,000.

The impact of the tariffs will not be felt immediately, as dealerships work through their vehicle stock. However, the net impact could still be devastating, with some models potentially disappearing from showrooms altogether. The auto industry has had months to prepare for the tariffs, but given the complex nature of supply chains, it's unclear that any of them will be able to avoid passing cost increases along to consumers.

The investment bank Jefferies predicted prices would go up by about 6% on average, or $2,700, while two analyses cited by Kelley Blue Book agreed on a $3,000 average price bump. As the industry grapples with the implications of the tariffs, one thing is clear: consumers will be the ones to bear the brunt of the cost increases.