On March 27th, President Trump's 25% tariff on all imported cars kicked in as an attempt to revive American manufacturing jobs. According to a former Ford CEO Mark Fields, "there is no where to hide in the auto industry", as both consumers and producers will face hurdles in the coming years. Fields also said it is likely that the auto makers effected will eat some of the additional costs but consumers will take the majority of the burden.
There are varying estimates of what exactly those costs are going to be as Bank of America has announced they believe a 25% tariff on all imported auto parts would increase total cost by $26B or about $3,300 per vehicle. Goldman Sachs estimated that the cost per vehicle could increase anywhere from $5,000-$10,000.
President Trump is adamant about the positive effects of these tariffs including increases in American made cars being purchased, increased manufacturing and then in turn more jobs. While the long-term outcome is unclear, the current effects of the tariffs have been largely negative.
https://www.cnn.com/2025/04/03/business/car-prices-tariffs-trump/index.html
2 comments:
I wonder how this will affect American cars in terms of competition. I feel like they're all sort of looking the same (I'm thinking Ford and Chevy trucks). I wonder with a lack of competition from foreign companies will allow American Manufacturers to take advantage of more market control without really improving their product.
The car industry is definitely facing a tough road ahead with these new tariffs. While the goal of creating more jobs is good, it’s important to consider how these higher costs could affect both consumers and the auto industry as a whole.
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