Car prices may skyrocket due to Trump's decision.

U.S. President Donald Trump is imposing tariffs that could lead to a sharp increase in car prices.

Representatives of automakers warn that the 25% tariffs on imports from Canada and Mexico will result in significant price hikes for cars.

'All automakers will be affected by the tariffs on Canada and Mexico... Most expect that prices for some car models will rise by 25%, and the negative impact on prices and availability will be felt almost immediately,' said John Bozzella, head of the Alliance for Automotive Innovation, which represents major automakers in the U.S.

Automakers warn of disruptions to the existing integrated supply chain in North America, which has been in place for over 25 years. Some auto parts may cross the border multiple times before the final assembly of cars.

Stellantis claims that the tariffs will put flagship brands Chrysler, Dodge, Jeep, and Ram at a competitive disadvantage compared to importers from Korea, Japan, and Europe.

The American International Automobile Dealers Association also reported that dealers are already facing rising prices for cars and parts, as well as high interest rates.

'Tariffs could directly contribute to price increases of thousands of dollars,' the statement said.

President Trump is imposing tariffs that could significantly raise car prices.