Amid recent tariff announcements, President Donald Trump’s plan to impos 25% tariffs on imported vehicles and auto parts could have cost ramifications for consumers.

According to the Wall Street Journal, the new tariff will impact around half of cars and trucks sold in the United States.

The Trump administration began enforcing the new auto tariffs on April 2. The White House claimed in an official announcement the tariffs would protect America’s automobile industry, calling it vital to national security.

“The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary,” the White House said.

The White House argued the 25% auto tariffs could bring in over $1 trillion in the next year, but economists disagree with that amount. The Yale Budget Lab, a nonpartisan think tank, said the tariffs could raise around $600 billion through 2035.

The same study said vehicle prices for a new car made in 2024 would rise by an average of $6,400.

U.S. Rep. Mike Kelly, R-16th, spoke about the auto tariffs Thursday, April 3, on Fox Business. He emphasized that car engines and other parts come from all over the world and there will inevitably be items impacted by the tariffs.

“Unfortunately, there is truly nothing that is built entirely in America, it’s just not. There’s a global parts chain,” Kelly said.

Kelly, who’s district includes Butler County, owns multiple car dealerships. He said he is not panicking yet over the auto tariffs.

“I’m not pushing the panic button, I’m not running around with my hair on fire, I’m just saying look, let’s wait to see how it actually shakes out,” Kelly said.

Kelly, who is on the House Ways and Means Committee, and chairs it’s Subcommittee on Tax, was asked if Congressional Republicans will pass tax cuts to offset price increases from the auto tariffs. When asked if he’s confident Republicans in both chambers can get together and pass the tax cuts, he referred to Trump as “the greatest negotiator in world,” and said his party will come together to pass cuts.

But he didn’t deny car prices may go up.

I’m a Chevrolet dealer, I’m a Hyundai dealer, I’m a Kia dealer, I’m a Toyota dealer, I’m a Mitsubishi dealer. All of those vehicles, at some time or another, touch all together different places,” Kelly said on Fox Business. “And so the question is then, what is the 25% tariff going to be on? Is it going to be on the parts or the final assembly? Where does the tariff come in?”

“Are prices going to go up? Probably,” Kelly continued.