The price of eggs still hasn’t come down and soon the prices of vehicles are going up. . .

By Gary S. Vasilash

If you were thinking about buying a new vehicle, you might hurry given the application of tariffs on vehicles imported from Canada and Mexico.

No, it won’t mean that the price will go up 25%. But they will go up sufficiently such that you’ll more than notice it on your loan payments.

Anderson Economic Group has figured that vehicle prices will rise on the order of $4,000 to $10,000.

Now, of course, this pass through of pricing isn’t going to be instantaneous.

But it is going to be significant.

According to Stephanie Brinley, analyst at S&P Global Mobility, the vehicle manufacturers are going to be building some 20,000 fewer vehicles per day.

Brinley, speaking to the Automotive Press Association, also pointed out that there is a whole lot of trade going back and forth across the borders, and this is not only parts being produced by suppliers.

Say you want to buy a Ford F-150. Those trucks are built at plants in Dearborn and Kansas City. No problem there.

But say you want a V8.

That’s built in Windsor, Ontario, Canada.

EV sales are already tough.

Chevy has a hit with the Equinox EV. A large part of that is undoubtedly that it is a 315-mile range EV that starts at $41,900. For now.

It is built at the GM plant in Ramos Arizpe, Mexico.

So are the Chevy Blazer EV and the Cadillac Optiq.

Let’s say you want to buy a Ford Mustang GT, which ranks highly in the 2024 Made in America Auto Index from Kogod School of Business.

What’s the likelihood that if the price of other things in the showroom go up (the Mustang Mach-E is built in Cuautitlan, Mexico) the price will be held on the Mustang GT with the gas engine?

Low, I suspect. After all, not only are there going to be fewer vehicles to sell, they’re going to want to make something, and there’s only one way that’s going to happen.

Sure, maybe the vehicle manufacturers will eat the costs. For a while.

But if the trade dispute carries on, there will be little appetite for that.