The Supreme Court's Tariff Ruling Won't Bring Car Prices Back to Earth

Despite Friday's SCOTUS ruling, many tariffs affecting the auto industry will remain. So will the other dynamics that have led to today's historically high car prices.

It has never been more expensive to buy a new car. The average transaction price last month for buyers in the United States was $48,576, up nearly a third from 2019, according to Edmunds. The “affordable” car—$20,000 or less—is dead.

The high prices have been pinned on plenty of economic dynamics: lingering pandemic-era supply chain issues, the introduction of expensive technology into everyday cars, higher labor and raw materials costs, and new tariffs by the Trump administration affecting imported steel, aluminum, and cars themselves.

Now, despite a US Supreme Court ruling that will nix some of those Trump tariffs, car buyers will likely get no respite.

“The core cost structure facing the auto industry hasn’t fundamentally changed ...