UC Merced Associate Professor of Economics Greg Wright said it depends on a few factors. He believes if manufacturers see this as a negotiating tactic, they may hold off on raising prices.
If the goal is to bring manufacturing back to the U.S., Wright said we'll feel the effects sooner.
"It usually takes a few weeks in terms of the logistics in the customs agency to sort of start, actually imposing and collecting tariff revenues," said Wright. "But I think the car manufacturers are going to respond very quickly, and we will see prices rise almost immediately."
But Wright believes shoppers will pay the price.
"We do have an instance in which we did have tariffs raised in the previous trump administration on Chinese products," said Wright. "What people have found actually is that the pass-through was nearly 100%. It's not clear that that's going to be the case this time. Maybe it'll be less than 100 percent."
He anticipates American auto producers will also raise their prices in competition.
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