In a move that’s already sending shockwaves through the auto industry, President Donald Trump has announced a 25% tariff on vehicles and parts imported from Canada and Mexico, ​which took effect February 1, 2025. As if that weren’t enough to make car buyers and automakers sweat, the administration also impos​ed a 10% tariff on Canadian energy imports and 25% on Mexican energy imports, which analysts say will drive up U.S. gas prices by at least 10 cents per gallon.

What Does This Mean for Your Next Car?

If you’re shopping for a Chevy Equinox, Toyota RAV4, Ford Bronco Sport, Honda Civic, or Nissan Sentra, brace yourself—many of these popular models are built in Canada and Mexico, making them prime targets for tariff-related price hikes. Automakers now face a tough choice: absorb the added costs or pass them on to consumers. Spoiler alert: you’ll likely be the one footing the bill.

Take General Motors, for example. The Chevy Equinox, the brand’s second best-selling vehicle in 2024 with over 207,000 units sold, is built in San Luis Potosí, Mexico. Its electric cousin, the Equinox EV, along with the Blazer EV and Honda Prologue, comes from Ramos Arizpe, Mexico. Similarly, Ford’s Mustang Mach-E, which had a record-breaking 51,745 units sold in 2024, is assembled in Cuautitlán Izcalli, Mexico.

For some brands, the impact will be massive. Toyota, for instance, builds its best-selling RAV4 in Woodstock, Ontario, and Honda’s popular HR-V comes from Celaya, Mexico. The moment these tariffs hit, prices on these models will almost certainly climb.

Fuel Prices Are Also Taking a Hit

If rising car prices weren’t enough, the new energy tariffs mean you’ll ​also pay more at the pump​. The U.S. imports 52% of its foreign oil from Canada and 11% from Mexico. With refiners now forced to pay steep import taxes, those costs will be passed straight to drivers.

Americans can expect at least a 10-cent-per-gallon increase at the gas station. But if Mexico and Canada retaliate, this could escalate, making commutes, road trips, and daily drives significantly more expensive.

Will the Auto Industry Bring Production Back to the U.S.?

The big question: Will these tariffs force automakers to move production back to the U.S.? The short answer: not anytime soon.

While shifting factories stateside would avoid tariffs, it’s not as simple as flipping a switch. Building new plants, retooling existing ones, and hiring workers takes years—not to mention billions of dollars.

Meanwhile, supply chain disruptions could get worse before they get better. Tariffs could lead to delays in getting vehicles to dealers, and some manufacturers may cut production of affected models altogether. If that happens, expect even higher sticker prices and longer wait times for certain cars.

How Will This Impact Everyday Americans?

Here’s the bottom line:

• New cars will cost more—especially models from Canada and Mexico.
• Gas prices are rising, making driving more expensive.
• Parts and repairs could get pricier, as many components are imported.
• Automakers may slow production, leading to inventory shortages.
• Retaliatory tariffs from Canada and Mexico could escalate the situation further.

What Can You Do Now?

If you’re in the market for a new car, buy sooner rather than later. Dealers may hike prices once the tariffs go into effect, and certain models could become harder to find. It’s also worth considering fuel-efficient vehicles, as higher gas prices will eat into budgets.

Final Thoughts

The 2025 tariffs are shaping up to be one of the biggest disruptions to the auto industry in decades. While the goal may be to bring manufacturing back to the U.S., the short-term reality is higher prices, fuel hikes, and potential job losses. Whether you’re shopping for a car or just filling up your tank, your wallet is about to feel the impact.

Buckle up—it’s going to be a bumpy ride.

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What’s the Big Deal?

This merger could create the world’s third-largest automaker, with combined resources to dominate the EV market. Honda and Nissan hope to outpace rising Chinese brands like BYD and Nio.

Why Now?

Two significant factors are at play: China’s dominance and the need for scale. Let’s examine each one.

China’s Dominance

Thanks to cutting-edge EV technology and software innovation, China has overtaken Japan as the world’s largest auto exporter. Honda and Nissan? They need a united front to stay relevant.

The Need for Scale

In the U.S., Nissan is losing ground, and Honda’s reputation isn’t bulletproof. Their answer? Team up to create possible cars like the RoLine, which would blend the Nissan Rogue and Honda CR-V.

What’s in It for You?

Pooling resources could save billions, boosting efficiency in everything from EV production to R&D. However, success isn’t guaranteed—look at DaimlerChrysler’s failed attempt at synergy.

The EV Challenge

Neither automaker has genuinely cracked the EV market. Who knows? We could see cars like the Leafsight, a potential merger of the Nissan Leaf and Honda Insight, combining eco-friendliness with cutting-edge hybrid tech.

Beyond the Numbers

Numbers don’t tell the whole story. What about vision? Let’s look at the vehicles they’re planning.

Future-Ready Ecosystem

Beyond EVs, Honda and Nissan aim to create a future-ready ecosystem with autonomous driving, AI integration, and possible models like the CivicZ—a sporty yet practical hybrid coupe combining the Nissan Z with the Honda Civic.

More Choices for You

And for you? More choices, like the possible rugged Pathline, merging Nissan Pathfinder capability with Honda Ridgeline versatility.

The Road Ahead

The merger’s success hinges on synergy. If Honda and Nissan can harmonize operations and cultures, vehicles like the AltAccord could dominate their segments.

Is This a Revolution or a Gamble?

So, is this the start of something revolutionary or another corporate gamble? Time—and the road ahead—will tell.

Betting Big on the Future

From EV innovations to bold new designs, Honda and Nissan are betting big. Whether it’s Leafsight for sustainability or the Pathline for adventure, the future of these combined brands could redefine the way we drive.

You can follow Nik Miles for more insights and updates on the automotive industry.

NIK Miles

Auto Reporter/Influencer

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