Tariffs were one of President Donald Trump’s biggest campaign promises, and they have become a reality, albeit with a few caveats.
Among the 50+ executive orders Trump signed within his first three weeks in office was one implementing an additional 25% tariff on imports from Canada and Mexico (with a lower 10% charge on Canadian energy resources) and a 10% charge on imports from China. A statement from The White House explained that these tariffs are “a powerful proven source of leverage for protecting the national interest,” aimed at addressing “the extraordinary threat of illegal aliens and drugs.”
One day before the tariffs were to take effect, however, Trump halted the charges against Mexico and Canada for one month. This was due to a “friendly conversation” he had with Claudia Sheinbaum, the president of Mexico, and a “good call” with Justin Trudeau, the prime minister of Canada, who promised to step up their efforts at patrolling their borders.
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How will tariffs affect car buyers?
Time will tell what happens next in this unfolding global drama, but the outlook seems grim for U.S. car buyers, as consumers should generally expect to find higher prices at car dealerships as well as at the pump.
Automakers like General Motors, Stellantis, Toyota, and Honda make about 40% of their North American cars and trucks in Canada and Mexico, and 60% of the oil the US imports comes from Canada, according to data from The New York Times.
Related: The 10 most reliable cars according to Consumer Reports
Here’s a list of some of the automakers and their vehicle models manufactured in Mexico and/or Canada:
Automakers & vehicle models impacted by Canada/Mexico tariffs
| Automaker | Models | Plant locations |
|---|---|---|
|
Audi |
Q5 |
San Jose Chiapa, Mexico |
|
BMW |
3 Series, 2 Series Coupe, M2, Neue Klasse |
San Luis Potosi, Mexico |
|
Ford |
F-Series, Maverick pickup, Bronco Sport, Mustang Mach-E |
Chihuahua, Cautitlan, and Hermosillo Mexico, and Oakville, Ontario, Canada |
|
General Motors |
Chevrolet Equinox, Chevrolet Silverado, Chevrolet Blazer, GMC Sierra |
Silao, Mexico |
|
Mazda |
Mazda3 |
Salamanca, Mexico |
|
Nissan |
Sentra, Versa, Kicks |
Cuernavaca and Aguascalientes, Mexico |
|
Stellantis |
Ram, Jeep Compass |
Saltillo and Toluca, Mexico and Windsor and Brampton, Ontario, Canada |
|
Toyota |
RAV4, Tacoma |
Tijuana and Guanajuato, Mexico and Woodstock and Cambridge, Ontario, Canada |
|
Honda |
Civic, CR-V |
Alliston, Ontario, Canada |
|
Volkswagen |
Jetta, Tiguan, Taos |
Puebla, Mexico and St. Thomas, Ontario, Canada |
EVs are also vulnerable. On his first day in office, Trump revoked President Biden’s mandate, which called for 50% of new vehicles in the U.S. to be battery-powered by 2030. He has also criticized incentives aimed at encouraging EV purchases, although it will take an act of Congress to remove the $7,500 clean vehicle tax credit that began in 2023.
If all this news makes yesterday seem like the perfect time to scoop up a new car, truck, or SUV, you’re probably right. According to The Detroit Free Press, new vehicles are estimated to increase between $1,000 to $9,000—or even higher when the tariffs take effect. And if the tariffs remain in place, they could cause as many as 165,000 autoworkers to lose their jobs.
But right now, the Mexico/Canada tariffs remain on pause.
Consumer Report’s list of cheap cars to buy now
Luckily, Consumer Reports, a consumer watchdog and automotive authority since 1936, already crunched the numbers for its millions of readers. In January 2025, it published its list of 10 cheap cars to buy now.
Related: The 10 most fuel-efficient cars according to Consumer Reports
Through road tests at its 327-acre auto testing center in Colchester, Connecticut, and extensive surveys of its members, CR authorities ranked these models as both safe and reliable in terms of performance and owner satisfaction. Each model also carries the designation of being “CR Recommended,” which means they ranked at the top of their respective categories in road and crash test scores and had above-average reliability ratings.
Best of all, they’re steals at current prices—and, let’s be real, when will you ever be able to say that again?
Another big plus: CR reached its pricing conclusions by sorting through millions of data points containing actual transaction prices—not sticker prices.
More on automotive:
- Best-rated 2025 SUVs under $40k according to Consumer Reports
- 10 discounted new cars to buy now, according to Consumer Reports
- Consumer Reports: Cheapest cars to maintain over 10 years
Just note that at least two of the models, the Mazda3 and Nissan Sentra, are expected to be affected by the impending tariffs since they are built in plants in Salamanca and Aguascalientes, Mexico, respectively. So, if you have these cars in mind, it might be wise to put your foot on the gas pedal.
Or if you don’t already have a car, hop in an Uber to get to your nearest dealership.
10 Cheap Cars that Consumer Reports Recommends
Hyundai Venue 2025
Price Range: $20,100 – $23,350
Overall mpg: 32 / city 23 / highway 41
Hyundai
Nissan Sentra 2025
Price Range: $21,590 – $24,590
Overall mpg: 32 / city 22 / highway 44
Nissan
Toyota Corolla 2025
Price Range: $22,325 – $28,190
Overall mpg: 36 / city 24 / highway 51
Toyota
Hyundai Elantra 2025
Price Range: $22,025 – $35,750
Overall mpg: 33 / city 21 / highway 49
Hyundai
Kia Soul 2025
Price Range: $20,490 – $24,790
Overall mpg: 28 / city 21 / highway 35
Kia
Mazda 3 2025
Price Range: $23,950 – $36,950
Overall mpg: 30 / city 20 / highway 44
Mazda
Buick Envista 2025
Price Range: $23,700 – $28,600
Overall mpg: 29 / city 21 / highway 39
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Subaru Impreza 2025
Price Range: $23,610 – $28,500
Overall mpg: 29 / city 19 / highway 42
Subaru
Kia Seltos 2025
Price Range: $24,690 – $31,190
Overall mpg: 28 / city 20 / highway 35
Kia
Subaru Crosstrek 2025
Price Range: $25,810 – $32,610
Overall mpg: 29 / city 20 / highway 41
Subaru
Related: Veteran fund manager issues dire S&P 500 warning for 2025
