Now that Donald Trump has won a second term in the White House, your next car purchase could be very different—and more expensive. President Trump’s planned tariffs to protect American industry might bring some benefits to U.S. automakers, but they’re also likely to impact car prices, availability, and even which models end up on the lot. Here’s what to expect if you’re planning to buy a car in the coming years.

1. You may pay more for your next car

Under President Trump’s proposed 100% tariff on foreign cars and auto parts, prices could rise sharply across the board—even for cars manufactured in the U.S. Many “American-made” vehicles are actually built with parts sourced globally, especially from Canada, Mexico, and China.

One illustration is the semiconductor shortage, which has already shown how reliant the U.S. is on foreign components to meet production demand. During the shortage, prices for both new and used cars soared due to a lack of domestically available chips. With President Trump’s proposed tariffs potentially affecting a wide range of auto parts, carmakers may face steep costs or delays if they try to bring production back to the U.S., leading to higher sticker prices for consumers.

Counterpoint: Not all car prices may rise. During President Trump’s first term, I wrote about how General Motors faced a steep tariff on its China-built Buick Envision yet chose to keep selling the model in the U.S. without raising prices. Buick absorbed the cost, a move some other manufacturers could follow if President Trump’s new tariffs come to pass.

2. You may wait longer for an affordable EV or hybrid option

The electric vehicle market could be hit hard by President Trump’s second-term policies, especially given the U.S. reliance on low-cost Chinese batteries, made affordable through the Chinese government’s $29 billion in subsidies, tax breaks, and production incentives. I previously wrote that China’s massive investment has positioned it as the world’s largest EV battery producer, making it difficult for U.S. carmakers to match Chinese pricing. New tariffs could add thousands to the cost of importing these batteries, making budget-friendly electric vehicles even harder to come by for American consumers.

Counterpoint: While these tariffs may drive up short-term costs, they might also spur domestic investment in the EV industry. A number of American manufacturers are already working to develop homegrown lithium-ion battery technology, and the pressure from President Trump’s tariffs could speed up the establishment of U.S.-based production, eventually bringing down costs and making EVs more accessible over the long term. But we are at least 15 years behind China’s development of lithium mining, refining, and battery assembly.

3. You may have fewer foreign options

If President Trump’s new tariffs go into effect, foreign automakers could decide to scale back their U.S. offerings to avoid high import taxes. Germany, for example, is the largest European exporter of luxury vehicles to the U.S., with brands like BMW, Mercedes-Benz, and Volkswagen relying on American buyers. After President Trump’s election, stock prices for these automakers dropped, reflecting fears of high potential tariffs on German cars, which could make many luxury vehicles prohibitively expensive in the U.S. market.

Some German automakers, like BMW and Volkswagen, already have plants in the U.S., which could soften the impact of these tariffs. President Trump has previously expressed interest in German car companies expanding their American manufacturing: “I want German car companies to become American car companies.” However, this shift could mean a pared-down selection of German cars—especially those that aren’t profitable to assemble domestically.

Counterpoint: See the next section.

4. More “Detroit” models available with advanced foreign tech

While the immediate impact of President Trump’s trade policies could make foreign cars and components more expensive, there’s a long-term scenario in which these policies encourage U.S. automakers to collaborate with foreign technology providers. When the U.S. first imposed the “Chicken Tax” on imported trucks in the 1960s, foreign manufacturers found a way around it by establishing joint ventures with American car companies. These partnerships, such as Toyota’s joint venture with General Motors, helped American automakers incorporate Japanese manufacturing techniques and produce more efficient vehicles—even though many of these were simply rebadged foreign cars assembled domestically.

Today, President Trump’s tariffs might push domestic manufacturers to seek out similar collaborations with foreign companies for advanced EV technology. Ford, for instance, has already begun collaborating with China’s CATL to build a new EV battery plant in Michigan. This facility will produce lithium iron phosphate (LFP) batteries, a newer, more affordable battery technology developed by Chinese engineers. While President Trump’s tariffs could slow down EV production initially, joint ventures like these could allow American-made cars to integrate foreign advancements and ultimately improve.

Counterpoint: These partnerships won’t change the market overnight. As I previously wrote, American automakers are still working to make EVs competitive with their foreign counterparts, and building a complete domestic EV supply chain will take time. Even with foreign tech collaboration, U.S. automakers may not be able to bring affordable EVs to market as quickly as their global competitors, especially as President Trump’s tariffs slow access to Chinese parts and production know-how.

Your next vehicle purchase

A second Trump term promises to make waves in the auto industry, impacting everything from car prices to the lineup of vehicles available in the U.S. For buyers, this likely means higher prices and fewer options, at least in the short term. But as manufacturers adapt—possibly by moving more production to the U.S. and partnering with foreign tech providers—the longer-term impact could include more American-made models boasting global innovations. If you’re planning to buy a new car in the coming years, you’ll want to keep an eye on how these trade policies play out and be prepared for a rapidly changing market.