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Carmakers Poised to Lift 2026 Vehicle Prices as Tariff Costs Roll In

Analysts expect a shift from restraint to higher prices once new models reach showrooms.

Vehicles are offered for sale at a General Motors dealership on July 22, 2025 in Chicago, Illinois. General Motors, the maker of the Chevrolet, Buick, GMC, and Cadillac brands, reported a $1.1 billion drop in the second quarter net income compared with the same quarter in 2024, which it attributed to increased costs and industry uncertainty stemming from tariffs imposed by the Trump administration.
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Overview

  • New-vehicle prices have been largely steady so far, with July averages up less than 2% from March as automakers leaned on inventory and soft demand.
  • As 2026 models arrive, experts expect moderate pass‑through of tariff costs, with some MSRPs already up—Chevrolet Traverse and Cadillac CT5 by more than 7% and the imported MINI Cooper by 11.4%.
  • Manufacturers are channeling increases through fewer base trims, pricier option bundles and higher destination charges rather than large jumps on the window sticker.
  • Unsettled trade terms are tempering broad hikes, with a U.S.–EU outline for a 15% rate not yet implemented and country‑specific designations still in flux.
  • Forecasts point to industrywide increases in the mid‑single digits this fall, and some analysts advise buying sooner to avoid rising prices and disappearing lower‑cost choices.