If you’re in the market for a Chevrolet Silverado or GMC Sierra, you may want to act fast. A proposed 25% tariff on goods imported from Mexico, set to go into effect on February 1, 2025, could push truck prices even higher. The tariff would affect vehicles built in Mexico, including many of GM’s popular full-size pickups, as well as parts essential to the assembly process. For Silverado and Sierra owners and buyers, this means one thing: you might end up paying more for your favorite trucks next time you buy one.

Let’s break down what’s happening and how it could affect your wallet.

What Does Mexico Have To Do With The Silverado and Sierra?

To understand why these tariffs could hit Silverado and Sierra buyers so hard, you first need to know where many of these trucks are built. GM operates a major manufacturing facility in Silao, Mexico, a city located in the central state of Guanajuato. Opened in 1995, the Silao plant has been a key part of GM’s production strategy.

At this facility, GM not only assembles trucks but also builds engines and transmissions. In fact, GM’s operations in Mexico accounted for over 743,000 vehicles in 2022, with a large share of that production being Silverado and Sierra trucks. These vehicles are built in Mexico and shipped across the border to dealerships in the United States.

Chevrolet Silverado towing a loaded trailer on an open highway with mountains in the background, showcasing its durability and performance.
The Chevrolet Silverado in action, towing a full load on a scenic mountain road. Trucks like this, built at GM’s Silao factory, could face price hikes due to proposed tariffs on Mexican imports.

Increased Prices Might Be Passed Along To Pickup Buyers

The proposed 25% tariff on Mexican imports would increase the cost of every Silverado and Sierra built in Silao. Tariffs are essentially taxes on goods entering the country, and automakers like GM would need to decide how to handle these additional costs.

There are only two realistic options:

  1. Pass the Cost to Buyers: Raise the price of trucks to make up for the higher production costs.
  2. Absorb the Cost: GM could try to absorb the tariff’s impact, but this would significantly cut into its profits—something automakers are unlikely to sustain for long.

For consumers, this means the price tag on a Silverado or Sierra could jump significantly. These trucks are already among the most sought-after vehicles in the U.S., and their popularity has driven prices higher in recent years. Adding a 25% tariff to the equation could push them out of reach for some buyers.

Here’s an example:

The average price of a new Silverado is around $55,000. A 25% tariff would add $13,750 to the cost of production. Even if GM only passes part of that increase to buyers, you could see sticker prices climb by thousands of dollars.
If you think truck prices are high now, the tariffs could make a tough situation even worse for buyers who rely on trucks for work or personal use.

Finished Pickups Are Just The Start & Consumers Will Pay More

The potential impact isn’t limited to Silverado and Sierra buyers. GM and other automakers also import many parts from Mexico, from transmissions to smaller components like wiring harnesses. Even vehicles built in the U.S. often depend on parts that cross the border multiple times before final assembly.

If those parts are subject to tariffs, it could lead to higher prices across the board—even for vehicles not made in Mexico. On top of that, supply chain disruptions could result in delays and inventory shortages at dealerships.

The reality is, end consumers are likely to feel the biggest impact. For GM and other automakers, trucks like the Silverado and Sierra are key profit-makers. To stay competitive, manufacturers might not be able to absorb the full cost of the tariffs, meaning the extra expense will likely be passed along to buyers.

This means:

  1. Higher Monthly Payments: If truck prices go up, so will the financing costs for buyers.
  2. Limited Availability: If production slows due to supply chain issues, finding the truck you want could become more difficult.
A GMC Sierra driving along a scenic road by a river, surrounded by dense forest and mountains, highlighting its rugged yet refined design.
The GMC Sierra cruises through a scenic forest highway, blending rugged performance with refined design. Trucks like this, produced at GM’s Silao plant, could see price increases due to proposed tariffs on Mexican imports

What’s Next & How Will General Motors React?

The proposed tariffs are part of a broader trade policy designed to boost U.S. manufacturing. While the goal is to encourage companies to bring more production stateside, the reality is that shifting operations isn’t quick or cheap. GM’s Silao plant is a state-of-the-art facility built to handle high-volume truck production, and moving that capability elsewhere would take years.

In the meantime, the tariffs could lead to higher prices for consumers, delays in production, and even changes to how GM and other automakers operate in the long term.

Thinking About Buying A New Silverado or Sierra? Do It Now.

The Silverado and Sierra have long been staples for truck enthusiasts, offering the power, reliability, and capability that GM is known for. But with tariffs looming, the cost of owning one could increase significantly.

If you’ve been eyeing a new truck, now might be the time to act before prices climb. And if the tariffs do go into effect, staying informed on how GM and other automakers respond will be crucial.

For now, the only certainty is that change is coming—and it could make your next Silverado or Sierra more expensive than ever before.