New car prices could increase $4,000 or more, according to one estimate. And used cars could also rise in price. “It’s a crazy situation for consumers,” an expert said.

Car shopping may be especially challenging this year.

President Trump’s threatened 25 percent tariffs on goods imported from Canada and Mexico would deal a major blow to the auto industry, whose supply chains extend across U.S. borders into both of those countries. Those tariffs have been paused until April. But a second set of tariffs, 25 percent on imports of steel and aluminum, took effect this week, and those will also hit car manufacturers.

The whiplash has left the American automobile industry in a state of turmoil. That translates to a daunting market for car shoppers, who are already rattled by the high cost of new vehicles and the expensive loans to buy them.

What impact could tariffs have on car prices?

If the delayed tariffs

Keep reading this article on The New York Times Your Money.

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