President Donald Trump’s plans to raise tariffs 25% next week on vehicles imported from the European Union is disrupting the auto industry and creating uncertainty among Long Island car buyers.

The change would increase the tariff on European cars and trucks from 15%, unwinding a major trade deal the United States agreed to last year with the 27-member EU, if the higher tariffs are ultimately implemented.

The announcement marks the latest change in the Trump administration’s tariff policies and could add to the cost of buying a car, particularly for affluent Long Islanders interested in cars manufactured in Europe by brands such as BMW, Mercedes-Benz and Audi, said Erin Keating, an executive analyst at Cox Automotive in Atlanta, which publishes industry data and research. 

“We finally felt the industry felt settled with where we landed on tariffs with some of our largest trading partners in the automotive sector,” Keating said. “To have one of our major trading partners fall back in the spotlight, and their tariffs put back up to 25%, really creates a big disruption across the board.”

New car prices have been on the rise, including on Long Island. The average transaction price for a new car in March on Long Island rose 5.5% to $49,533.58, according to Cox Automotive data. The price reached a peak of $49,800 last September. 

It’s unclear how the higher tariffs will affect the cost and availability of European cars. Last year, data showed some consumers rushed to purchase foreign vehicles before tariffs took effect, with automakers and consumers sharing in absorbing the effect of tariffs, according to J.P. Morgan Global Research.

Moving forward, automakers could reduce production, making certain models harder to find, and prices could rise if the supply of an in-demand model is limited, Keating said. But European car makers have avoided across-the-board increases to their suggested retail prices, targeting hikes to individual models. 

Ultimately, many American consumers base their buying decisions on affordability, and the nuances that contribute to the final price may not be apparent, Keating said.

“The average consumer is just trying to figure out, ‘Hey, I need four tires and an engine right now.'” she said. “‘Let me go see what I can get.'”

The change could cause Long Island car buyers to hesitate as it adds complexity around making a major purchase, said Steven Kent, chief economist for the Long Island Association. 

“The consumer drives the U.S. economy, so if they’re confused and they slow down, that means less spending,” he said.

Trump said in a Truth Social post Friday that he would raise the tariff because the EU had not complied with the terms of its trade deal with the United States. He noted the tariffs do not apply to European cars built at American plants. However, domestic car makers face tariffs on foreign parts.

“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” Trump said in the post.

The latest tariffs follow the Supreme Court’s ruling in February that Trump’s global tariffs were unconstitutional. 

In response, the Trump administration issued 10% import tariffs under a 1974 law that allows the president to levy tariffs for up to 150 days. That window ends on July 24. Congress has the authority to extend the tariffs. 

However, tariffs on European automakers were levied under a separate federal law that was not affected by the Supreme Court ruling.

The Associated Press contributed reporting to this article.