Trump’s tariffs drive up car prices and shrink options for American buyers.

Trump announced tariffs of 25% on auto and car parts the day before, sending automakers across the world shares lower and raising the possibility of job losses in the major auto exporting countries.

He claims that the levies could eventually increase output across the United States, but analysts believe the impact will be on automakers' decisions which will ultimately impact the wallets of consumers

"RATI:REGULATORY-POLICY makers can't eat 25%, they just can't," claimed Andy Palmer, former CEO of Aston Martin. "That means car makers will pass on as much of the cost of tariffs as they can," for example, the removal of features to reduce their costs, while simultaneously increasing costs.

Automakers could spread the price between U.S.-produced as well as imported versions, and cut back in terms of features. They may also, in certain instances, cease selling low-cost models targeted at first-time buyers, since the majority of them are imports and are less attractive when they come with a higher price mark.

The TOPIC:BUSINESS-TARIFFS could force additional Americans from the marketplace. S&P Global Mobility estimated Thursday that tariffs could create a situation that could cause annually U.S. CARM sales to drop to 14.5 millions to 15.5 million over the next few years, down from 16 million by 2024. Cox Automotive estimates tariffs will add $3000 to the price of the cost of a U.S.-made vehicle, and $6,000 for vehicles manufactured by Canada or Mexico with no exemptions.

Although luxury ASIA retailers such as Bentley and Ferrari declare that they'll pass the cost onto customers the typical margins of between 6% and 8 percent leave very little space.

The most affordable models that are likely to affect the affected models include Honda CR-V, Chevy Trax, Subaru Forester, CYCS, Chevy Equinox and Honda HR-V, said Erin Keating Executive analysis at Cox.