U.S. tariffs on Canadian and Mexican goods will hike prices of North American-produced vehicles by as much as $10,000 each, a consultant said.

President Donald Trump suggested imposing tariffs on auto imports, threatening to drive up the cost of cars further amid plans for tariffs on steel, aluminum, Canada, and Mexico. But economists and the insurance industry say that this will raise auto insurance costs.

The Trump administration plans to implement 25% tariffs on aluminum and steel. The craft beer industry could be hit particularly hard by the tariffs.

Volkswagen's Audi will expand output in North America and Mercedes will boost its U.S. production as Europe's carmakers try to protect themselves against U.S. President Donald Trump's tariff threats.