Auto prices expected to rise after tariffs, but one Lincoln dealer says it will be just fine

LINCOLN, Neb. (KLKN) — President Donald Trump announced a 25% tariff Wednesday on all cars not made in the United States.

It’s set to take effect April 2 and also applies to auto parts.

The cost of producing vehicles built at U.S. plants will rise from between $3,500 to $12,000 each, according to analysis by think tank Anderson Economic Group.

But Andy Goodyear with Honda of Lincoln said the tariffs actually won’t affect Honda too much because the majority its parts are made in the U.S.

“We have manufacturers in Indiana, Ohio and Alabama,” Goodyear said.

Honda Civics were made in Mexico. But last month, in anticipation of the tariffs, Goodyear said Honda moved the manufacturing of that model to the U.S.

But other companies may not be so lucky.

“Generally speaking, across the auto industry, there will be some big effects with the tariffs,” Goodyear said. “Overall, it’s a case-by-case by different manufacturers and how bad they’re going to be affected.”