[SIGNAL BRIEF] Tariffs and Pricing: Tariff data: new-car MSRPs up 10.4%, $30B cost; import +$5K to $8.9K; $2,795 des

Tariff data: new-car MSRPs up 10.4%, $30B cost; import +$5K to $8.9K; $2,795 dest fee

New analysis from Kelley Blue Book says tariffs have added an estimated $30 billion in costs across the auto industry in the first full year. The average MSRP is up 10.4%, but buyers are paying about 5.9% more, which implies dealers are eating the remaining 4.5% through negotiation and competitive pressure.

The price gap is biggest on imports, now estimated up $5,000 to $8,900 versus last year. For U.S.-assembled vehicles, the estimate is $1,600 to $2,000 higher. KBB also notes destination fees for 2026 models have hit new highs, including $2,795 on most full-size GM and Ford trucks and SUVs, and GM raised Silverado destination fees 40% in a year.

What this means for dealers: Expect faster OEM price actions and more invoice-to-MSRP drift, while front-end gross gets pinched by affordability ceilings. Reprice aged units aggressively, build payment-focused menus, and tighten trade-value discipline as tariff-driven MSRP creep shows up in every payment quote.

Source: Kelley Blue Book — https://www.kbb.com/car-news/tariff-costs-new-car-prices-up-10-since-last-year/

What this means for dealers: Expect faster OEM price actions and more invoice-to-MSRP drift, while front-end gross gets pinched by affordability ceilings.

Source: Kelley Blue Book