‘up To $3,000’: Expert Warns Car Prices Are About To ‘soar.’ Here’s What You Need To Do To Prepare

If you thought car prices were already bad enough to make you consider biking, buckle up—because things are about to get tricky.

In a now-viral TikTok, independent reporter and attorney Aaron Parnas breaks down how President Donald Trump’s newly tariffs could send car prices soaring by thousands of dollars. The move has sparked outrage among consumers, industry experts, and even corporations, which—shockingly—aren’t thrilled about people being priced out of buying new vehicles.

What's a tariff, and why does it matter?

A tariff is essentially a tax on imports. Governments use tariffs for a variety of reasons—sometimes to protect domestic industries, sometimes to retaliate against other countries’ trade policies.

In this case, Trump’s new 25% tariff on metals is supposed to pressure foreign governments and manufacturers. But as history has shown, tariffs often lead to price increases for consumers, since companies pass those extra costs down the supply chain. That means you, the person just trying to get from Point A to Point B, could be footing the bill.

How Trump’s tariffs affect the auto industry

As Parnas shows in his video, Bloomberg reports that the tariffs, which would target imported car parts, could cause financial strain on the automotive industry. Flavio Volpe, president of Canada’s Automotive Parts Manufacturers Association, didn’t mince words when describing the potential fallout: “The auto sector is going to shut down within a week because at 25%, absolutely no one in our business is profitable by a long shot.” 

In other words, a 25% tariff is enough to grind manufacturing to a halt—meaning fewer cars on the market and much higher prices for the ones that remain. Parnas also shared that according to analysts at Wolfe Research, the average price of a new car could jump by about $3,000, further stretching affordability for American and Canadian consumers.

Parnas urged viewers to make moves quickly. “So if you’re looking to buy a car or you’re looking to fix your car, now is the time to do so… before these tariffs take effect,” he warned.

According to Fortune, this could up car insurance prices, too.

'Can't afford a car anyway'

The news sent TikTok commenters into a spiral, with reactions ranging from furious to utterly defeated.

One user channeled their frustration into sarcasm: “Are we great yet???” Another didn’t hold back, saying, “It’s like he is intentionally sabotaging America.”

Some pointed out that the new tariffs will hurt businesses. “Corporations aren’t gonna like this new administration when no one can afford anything,” one person observed. And perhaps the most sobering response came from a commenter who summed up the reality for many: “Most can’t afford a new car anyway.”

Will the fervor of the people and retaliation from other countries cause Trump to change his mind?

What this means for you

Car prices are already hovering near record highs, and these tariffs will only make things worse. If you were planning to buy or lease a car in the near future, it might be wise to do it before these price hikes kick in. Even if a new car isn’t on your radar, consider handling any necessary repairs now—before parts become more expensive than what you or your insurance is willing to pay.

For now, it looks like the only people thriving in this situation are mechanics and bicycle manufacturers. Parnas has promised a deeper dive into the implications on his Substack. (Don’t worry, it’s free!) And, as usual, we’ll keep you posted here too (also for free).

Aaron Parnas did not respond to the Daily Dot for comment, but he’ll keep sharing tariff-related TikToks as this story develops.

@aaronparnas1 #greenscreen ♬ original sound - Aaron Parnas

Internet culture is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter here. You’ll get the best (and worst) of the internet straight into your inbox.

Sign up to receive the Daily Dot’s Internet Insider newsletter for urgent news from the frontline of online.

The post ‘Up to $3,000’: Expert warns car prices are about to ‘soar.’ Here’s what you need to do to prepare appeared first on The Daily Dot.