Lexus LS Van Concept
CASEY WILLIAMS | Auto Reviewer
AutoCasey@aol.com
As the opening of my favorite Disney song goes, “It’s a world of laughter, a world of tears. It’s a world of hopes and a world of fears.” That could also describe the state of the auto industry for 2026. With Trump’s whack-a-mole tariff policies, changing electrification incentives, and style revolution, all of those emotions are valid.
From where our cars come and where they’ll go are in flux. But don’t be afraid.
Trumpian tariffs
Nobody is laughing about Trump’s tariffs. About the only cars not affected by them are those produced in Canada and Mexico under the USMCA (United States Mexico Canada Agreement), negotiated during Trump’s first administration. Only the portion of the vehicle’s value from non-USMCA partners is subject to a 25 percent tariff. That should minimize the cost of the new Canadian-built Dodge Charger.
Many desirable hybrids and EVs come from Japan and Korea. As of September, autos from both nations are subject to a 15 percent tariff — better than the 25 percent inflicted earlier this year. Popular European luxury cars from Mercedes-Benz, BMW and Audi are subject to a 15 percent tariff, which is lower than the 25 percent originally planned.
And cars from China, the leader in EVs? With a 100 percent tariff, they’re pure unobtanium! One look at how many Chinese cars are sold in Europe makes it clear their automakers were underprepared … and so would be America.
GM and Tesla are close but still catching up. Beyond assembled vehicles, the Biden administration put a 25 percent tariff on the lithium-ion batteries required to make EVs hum.
It all adds to the sticker price of vehicles you want. Fortunately, there are many excellent vehicles of all types and brands — including their batteries — assembled right here in America.
Electrification realization
If you were looking for an affordable price on an EV, tariffs may not be your main concern. In an effort to spark investment in vehicles, assembly plants and battery production, the Biden administration passed a $7,500 federal tax credit. Well, anything that doesn’t require digging of coal or burning of fossil fuels is verboten in Trump World, so the credit is no longer available on qualifying vehicles acquired after Sept. 30.
So, what does that portend for the new year? The rich will still buy what they want, and they’ll still want EVs. But the rest of us may be excited about a new generation of sub-$35,000 models like the revived Chevy Bolt, redesigned Nissan Leaf and Subaru Uncharted that we cover in this special section.
After that, expect a renewed focus on plug-in hybrids. Automakers have invested heavily in battery, motor and recharge technology — all of which can be applied to plug-in hybrids that provide 30-40 miles electric range before carrying on with an efficient gas engine.
Think about the all-new Toyota RAV4 plug-in. Pure EVs are still the future, but plug-ins will play along the way. Given the turmoil, choices will be more limited than planned in the new year.
Design divine
Humor me and go search “1927 Ford Model T” and “1937 Lincoln Zephyr.” Search “1932 Ford V8,” too. These vehicles were built 10 and five years apart, respectively.
A Model T could barely maintain 40 mph without overheating. The Zephyr was created in a wind tunnel and can run all day on modern highways. The V8 was the half-way point. This was the 1930s.
As demonstrated at the recent Japan Mobility Show 2025, we’re in the midst of a similar revolution. I predict when you put a 2020 Toyota Corolla next to a 2030 Toyota Corolla, you’ll hardly believe they’re the same model.
Buyers want cars that look futuristic and electric, no matter the powertrain. Even with the focus on EVs, gas engines have become smaller and more powerful allowing for dramatically more aggressive designs.
Shapes are also shifting, evidenced by Lexus dropping its flagship LS sedan, the car that launched the brand in 1989, in favor of a raised luxury coupe and luxury mini-van. Cadillac also recently showed an all-road coupe concept.
Sedans are out; crossovers and vans are in, with an attention to craftsmanship not seen in a century. Screens will define interiors as complex sleek shapes and concept car looks will hone aerodynamics to maximize EV range and add fresh style.
Welcome to DRIVE! In this section, you’ll experience the future of automobiles…but also many incredible — and affordable — vehicles you can buy now. It’s still a world of hopes.
Storm Forward!