The impact of tariffs on the auto industry is no longer theoretical. Auto tariffs are officially limiting the options available to American car buyers. Though the average new price of a car is nearly $49,000, several popular automakers have options in their portfolios closer to $30,000. Those options aren’t as readily available as the pre-tariff era due to costs and profit margins.
Inventory of new vehicles priced under $30,000 has dropped significantly from 38% of the total market in 2019 to just 13.6% in the first half of 2025, according to Cars Commerce. Americans may want affordable entry-level cars, but automakers have limited the supply of these vehicles because of their exposure to tariffs.
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