Trump's proposed tariffs could raise car prices as much as $2,500, analyst says

(FOX 2) - President-elect Donald Trump made tariffs a focal point of his economic plan during his campaign for office this past election.

Now that he's set to return, both consumers and automotive dealerships are reconciling with the potential impacts that a trade policy like tariffs might have on the industry.

Many in metro Detroit are bracing for higher car prices once Trump takes office on Jan. 20. 

George Glassman of the Glassman Automotive Group is among the dealers that worries about what a tax on foreign car companies would do to his bottom line. He sells Japanese and South Korean models like the Hyundai, Kia, Mitsubishi, and Subaru.

"Certainly, if they did come into effect, you'd see an increase in the price of new cars, which obviously is gonna make it more expensive for the consumer, which is not a good thing," he said. "In addition to that, it would negatively impact the automakers and the broader economy."

That's not just conjecture either. 

Auto analysts weighing the possibility of a tax on imported goods, which Trump has said could be upwards of 10% on goods from China and 25% on products coming from Mexico and Canada, argue the higher price would eventually get pushed onto the consumer.

"There are different estimates out there," said Jan Griffiths. "The most recent one I saw from the Wells Fargo analyst predicted that the impact for component parts - tariffs on vehicles - could be anywhere between $600 and $2,500 per vehicle,"

Griffiths, who is a former auto supply chain executive, said that a tariff would only be a temporary solution to a bigger problem.

"The real issue is that the US automotive industry is not competitive as compared to the Chinese OEMs (original equipment manufacturer). We’re just not, so tariffs are simply just buying some time," she said.

However, some don't think any tariffs could come and that Trump's threats are a bargaining tool.