You May Pay More for a Chevy Silverado or GMC Sierra Thanks to Trump Tariffs
The Silverado and Sierra are produced in countries facing stiff tariffs, and that increased cost will likely be passed to the consumer.
President Donald Trump has not been shy about his intention to slap a 25 percent tariff on imports from Canada and Mexico. These tariffs could go in effect as soon as February 1. If that were to happen, you can expect the price of the Chevy Silverado and GMC Sierra to increase significantly. The Silverado is built in three different plants. One is in Fort Wayne, Indiana. The other plants are in Oshawa, Ontario, Canada and Silao, Mexico. The Sierra 1500 is also built in Fort Wayne and Silao. Even the trucks built in the U.S. could feel the sting of the tariffs because some major components, such as engines, are imported from Canada and Mexico.
And it gets worse. Remember that semiconductor chip shortage a couple of years ago? It limited vehicle production as well as some of the features available. Well, a lot of those semiconductors come from overseas. Trump wants to place a tariff on all imported semiconductors as well. He is also looking to impose tariffs on imported metals such as aluminum, steel and copper. The upshot is that it may be more expensive for GM to source the raw materials to build their trucks as well as other vehicles. And they will have no choice but to pass along those increases to the consumer.
How Much?
What everyone wants to know is just how much the price may increase for a new Silverado or Sierra. At this point we don’t know the answer to that question. However, it is reasonable to assume that prices could rise between 5 and 15 percent. Considering a base Silverado WT has an MSRP today of about $40,000, you would be looking at an increase of $2,000 – $6,000. On a top-of-the-line ZR2 that currently has an MSRP of about $72,000 the increase could be between $3,600 – $10,800. That is a serious chunk of change.
GM is Not Alone
The tariffs could hurt GM and Silverado and Sierra sales. However, GM is certainly not alone as these proposed tariffs are far reaching. It was reported earlier this week that Audi and Porsche may consider building vehicles in the U.S. to avoid these tariffs and numerous other automakers are working on contingency plans. That being said, GM is already feeling the pain. GM recently announced strong sales results with 2.7 million vehicles sold in 2024. However, the strong sales results were not enough to keep the stock price from plunging by 9 percent. According to a report by Reuters the drop in price is due to fears over tariffs as well as reduced support for electric vehicles.
More American Jobs
The goal of these tariffs is to get more jobs in the United States. Maybe that will eventually happen, but it will not be overnight. Such a change could take years. In the meantime, prices could potentially rise quickly. GM CEO Mary Barra told investors on a conference call Tuesday that she believes Trump “wants to use policy and regulations in ways that will strengthen not harm domestic manufacturers like GM.” Barra said that GM has an “extensive playbook” that they can follow should the tariffs be imposed. In the meantime, if you are considering buying a new Silverado or Sierra you might want to pull the trigger today.
Images: GM
