09:08 AM EDT, 03/28/2025 (MT Newswires) -- US President Donald Trump's recently announced tariffs on automobile imports are likely to put foreign automakers under increased financial pressure and result in higher vehicle prices, Wedbush Securities said in a Friday client note.

Earlier in the week, the White House announced 25% tariffs on imported passenger vehicles and certain auto parts, such as engines, transmissions and electrical components. The tariffs could be expanded to additional parts if deemed necessary by the Trump administration.

Trump's objective is to move auto production into the US, which can put financial pressure on foreign companies with global supply chains that under-utilize manufacturing facilities in the country, according to Wedbush.

In their current form, the auto tariffs have the potential to send the industry into "pure chaos" and raise the average price of vehicles between $5,000 and up to $10,000 to $15,000, Wedbush analysts led by Daniel Ives wrote in the note. The brokerage believes every auto manufacturer in the world will have to hike the prices of their cars in some capacity in the US due to the tariff impact.

Ferrari (RACE) on Thursday said its vehicles imported after April 2 will be subject to price increases of up to 10% in coordination with dealers, as it adjusts its policy due to the tariffs.

"The concept of this auto tariff in our view would be a back breaker and Armageddon for the auto industry globally and throws the supply chain into pure panic mode," Ives said. "We believe this adds up to $100 billion of costs annually to the auto industry and will essentially get passed directly onto the consumer and clearly erode demand on Day 1 of tariffs."

The tariffs are not expected to benefit US automakers as some of them import about 40% to 50% of parts from abroad, according to Wedbush. The brokerage predicts Tesla (TSLA) will be forced to raise prices as well, while General Motors ( GM ) will be under "major pressure" like several other car companies until more clarity is provided by the White House.