Proposed 25% U.S. tariffs on Canada and Mexico could lead to a sharp increase in vehicle prices, auto industry executives and analysts say.

An analysis from John Burns Research and Consulting, which focuses on the housing industry, estimates the cost of a newly constructed home will increase by nearly 5% if the White House’s proposed tariffs are implemented. That’s about $21,000 on the median-priced new home.

President Donald Trump's 10 percent tariffs are set to increase prices on goods like electronics, clothing, toys and auto parts.

"In his first term, President Trump instituted tariffs that helped level the playing field for American industry and workers without hiking inflation. In his second term, he will again use tariffs to raise wages, create jobs, expand investment and deliver economic prosperity," White House spokesperson Kush Desai said.