Will auto brands and new car buyers finally get some relief? The answer is as complex as the current trade war.
President Trump talks about possible $175 billion worth of tariff refunds
President Donald Trump answered a question about the possibility of $175 billion worth of tariff refunds following the Supreme Court ruling.
- The Supreme Court’s ruling invalidates some of President Donald Trump’s tariffs and could lower consumer prices in the long run.
- The decision could reduce car manufacturing costs and provide relief to car brands and buyers.
The Supreme Court’s decision canceling several of President Donald Trump’s tariffs has given pause to the administration’s current economic agenda. Tariffs on auto parts and imports remain in place, but the suspension could mean savings for consumers in certain product categories.
Automotive parts have been greatly affected by the soaring prices of new cars due to import tariffs and the subsequent rise in used car prices due to increased demand. According to Kelley Blue Book, the average price of a new car hit an all-time high of $50,326 in December 2025.
The Supreme Court’s ruling could provide much-needed relief to car buyers if manufacturing costs for car brands are reduced.
Impact of Supreme Court ruling on new car prices
The Supreme Court’s decision invalidated most tariffs imposed on trading partners such as China. The majority of auto parts used to manufacture cars in the United States come from Mexico, China, Canada, and Japan, respectively. Additionally, the U.S. imports the majority of its cars from Canada, Mexico, and other countries, according to the Visual Capitalist data application Voronoi.
The Supreme Court’s decision “will provide some relief to automakers, especially those with supply chains in Asian countries,” Edmunds reports. The per-vehicle cost of car production may drop slightly, as tariffs on many raw materials, parts, and machinery are considered illegal. With high tariffs still in place on cars and auto parts, the savings are unlikely to be passed on to consumers immediately.
Is it a good time to buy a new car?
New car prices may have skyrocketed in recent months, but that doesn’t mean there aren’t plenty of great new cars available for well below the average new car price (about $50,000). In fact, there are several new cars and SUVs available for less than $25,000.
2026 models with starting prices under $25,000.
- 2026 Kia K4: $22,290
- 2026 Nissan Sentra: $22,600
- 2026 Toyota Corolla: $22,925
- 2026 Hyundai Elantra: $23,750
Some 2026 SUVs have starting prices under $25,000 before taxes and fees, including the 2026 Hyundai Venue ($20,550), 2026 Chevrolet Trax ($21,700), and 2026 Nissan Kicks ($22,430).
Tariffs may have had a devastating impact on automakers, but many popular car brands are careful not to pass on increased production costs to consumers by raising prices across the board. If consumers do the right amount of research, there are enough choices of low-cost cars, trucks, and SUVs to secure a solid new car deal.
Which car brands are least affected by tariffs?
Automakers least affected by steep tariffs on imports and auto parts have strong manufacturing bases in the U.S., creating a win-win situation for U.S. workers, auto companies and consumers in the trade war. According to a 2025 article in Forbes magazine, Tesla is the number one car brand in the United States.
Tesla’s Model 3 electric sedan and Model Y electric SUV are the most American-made vehicles on the market. These also happened to be the best-selling models in their respective segments last year. Tesla sold 192,440 Model 3s and 357,528 Model Ys in 2025, according to sales data compiled by Cox Automotive.
Other vehicles uniquely positioned to withstand the impact of tariffs include the Ford Mustang, Honda Passport, Jeep Wrangler, Volkswagen ID.4, Chevrolet Colorado, and GMC Canyon. All of these models have at least 75% of their parts made in the USA.
