What's the Tariff on SUV?
Imported SUVs including many assembled in Mexico and Europe.
Current Tariff Rate
27.5%
Pre-2025 Rate
2.5%
Rate Increase
+25pp
Price Impact
+28%
+$8,524
Real-World Price Impact
Before Tariffs
$30,995
Volkswagen Tiguan
After Tariffs
$39,519
Volkswagen Tiguan
That's $8,524 more per unit — a 28% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
SUVs have become America's dominant vehicle type, representing 55% of all new vehicle sales — making the 27.5% tariff enormously impactful by volume. The supply chain is uniquely complex: Volkswagen builds the Tiguan in Puebla, Mexico; BMW assembles the X3 in Spartanburg, South Carolina (for export!); Toyota builds the RAV4 in both Japan and Ontario, Canada. The tariff creates winners and losers within single brands — a Mexican-built Tiguan costs $8,500 more while a theoretical US-built equivalent wouldn't. European luxury SUVs from Audi, Mercedes, and Porsche (mostly German-assembled) face the full tariff burden. The Mexico angle is particularly complex: USMCA was supposed to guarantee tariff-free auto trade, but Section 232 overrides it. This has sparked diplomatic tensions with Mexico and Canada while pushing automakers to accelerate US factory investments that won't come online for years.
📦 Supply Chain
Primary Origin
Mexico
Made in USA
52%
Import Volume
$89.4B
Alternatives
US plant expansion, some Canada shifts
📅 Tariff Timeline
1964
Chicken Tax established 25% on light trucks (SUVs exempt as 'cars')
2.5%2018
Section 232 investigation covers SUVs
2.5%2025
Section 232 tariff enacted on all imported vehicles
27.5%👥 Consumer Impact
Households Affected
118M
Annual Cost Per Household
$420
💡 Did You Know?
- •BMW's Spartanburg, SC plant is the largest BMW factory in the world — yet most of its output is exported, not sold domestically
- •Mexican auto plants employ 900,000 workers and produce 3.5 million vehicles annually, mostly for US consumption
- •The Ford Escape, America's best-selling SUV, is built in Louisville, KY — one of few top sellers unaffected by the tariff
Tariff Details
- HTS Code
- 8703.24
- Current Rate
- 27.5%
- Pre-2025 Rate
- 2.5%
- Tariff Type
- Section 232
Legal Authority
Section 232 (National Security)
Effective: Various (2018-2025)
Tariffs on imports deemed a threat to national security
The tariff on SUV is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 27.5% tariff on SUV is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 27.5% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $30,995 → $39,519
Related Products in Vehicles
Sedan / Car
27.5%
Toyota Camry (imported): $28,855 → $36,785
Pickup Truck
50%
Imported pickup: $42,000 → $63,000
Electric Vehicle
127.5%
Chinese EV: $25,000 → $56,875
Auto Parts
25%
Transmission assembly: $2,500 → $3,125
Tires (Passenger)
35%
Set of 4 tires: $600 → $810
Motorcycle
12.4%
Kawasaki Ninja 400: $5,299 → $5,956
🔍 Dig Deeper
See the Full Picture
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