US President Donald Trump is set to impose reciprocal tariffs on America's Liberation Day, Wednesday (April 2), by slapping 25% on imported passenger vehicles and light trucks. 

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Moreover, it will also impose tariffs on key auto parts including engines, transmissions and powertrain components. 

These tariffs on vehicles will take effect on April 3, however, the tariffs on parts will take effect on May 3, according to the proclamation signed by the president.

Also read: 'Why didn't they do it sooner?': Trump claims India 'going to drop tariffs substantially' ahead of 'Liberation Day'

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Here's what you need to know if planning to buy a car

These new taxes imposed by the Trump administration will raise the average cost of a car imported from a different country by thousands of dollars, the Associated Press reported. 

Moreover, not just buying, but also owning a car will also become more expensive due to the tariffs imposed on car parts, which could eventually hike the cost of auto repair bills. 

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Leading to this, the insurance costs will also surge. 

Also read: Liberation Day or Confusion Day? Trump reciprocal tariffs are coming, but officials don't seem to agree on how to implement

The car repair market is majorly dependent on imports, especially from the US's biggest trading partners. 

“If you are bringing your car to get repaired, chances are, it’s going to have a part that comes from another country,” said Jessica Caldwell, head of insights at auto-buying resource Edmunds, according to AP.

Also read: EU president vows to use ‘all cards’ to counter Trump’s tariffs

People rushing to buy cars 

Ahead of the tariffs, experts are advising shoppers to rush to buy new vehicles, in order to avoid paying thousands of dollars more under the new tariffs. 

Joe McCabe, president and CEO of AutoForecast Solutions, said, "Vehicles on lots and the inventory that exists today has not been impacted by tariffs, so it's a good time to buy a car."

"It has to fit within the financial boundaries of the consumer, but this would be the preferred time to do it."

Vermont-based artist Val Hird rushed to buy a car before April 2 and shared with news outlet CBS MoneyWatch, that she wanted a Toyota RAV4 Plug-in hybrid, but her local Toyota dealer did not have the vehicle in stock.

Hird said she did it only because the tariffs were being imposed.

Also read: US claims India imposes 100% tariff on American agricultural products, 'time for reciprocity,' says White House

(With inputs from agencies)