US taxation works the same way. It does very somewhat from state to state, but generally there is a sales tax assessed as a percentage of the sale price and an annual registration fee commensurate with the assessed value of the vehicle. For expensive trucks and SUVs, the latter can reach into the thousands.
Since most people are not buying a 35k+ vehicle with cash money, instead taking out loans, they are required by the bank to carry expensive full coverage insurance on top of the state-mandated liability insurance - and generally a more expensive vehicle will have more expensive insurance, since a tota loss requires a higher payout.
Gas prices in the US are lower than in many countries, but there are state and federal excise taxes, generally (nominally) used to fund road maintenance. Combining a large tank with long commutes and poor gas mileage, it’s not uncommon for people to be spending $200 (with the current low prices) a month per vehicle on gas. This is a significant fraction of post tax income for most Americans.
Americans are spending a ton of money on large vehicles. They know they’re spending a ton of money on them. For whatever reason, they really think it’s worth it.