Trump’s Tariffs Could Make Cars More Expensive — Fast
2025-01-27
2025-01-27

Car prices in the U.S. could skyrocket overnight if the Trump administration follows through on its threat to impose a 25% tariff on imports from Canada and Mexico. This move, expected as early as this Saturday, would impact not just vehicles assembled in those countries but also cars built in the U.S. because they rely on parts from north and south of the border.

Experts warn the tariffs could add thousands of dollars to the cost of new cars, making them even pricier for consumers already dealing with near-record vehicle costs. Even so-called “American-made” cars aren’t fully immune. Every vehicle produced in the U.S. uses parts imported from Canada or Mexico, meaning no car is truly all-American.

The tariffs could disrupt production lines across North America. Factories might slow down or shut down entirely as automakers weigh the costs of paying the new fees. Many plants in Mexico and Canada export vehicles to the U.S., with about 70% of their output—roughly 5 million cars last year—ending up on American lots.

It’s not just assembly lines that could feel the pinch. Canadian and Mexican officials have threatened retaliatory tariffs on U.S. goods, which could complicate things further. American factories also ship cars and parts to both countries, meaning the ripple effects could extend across borders.

If tariffs take effect, dealers might hold onto their current inventory, anticipating price hikes as supplies dwindle. This could make it harder for buyers to find affordable options, especially during the spring tax refund season, a crucial time for car sales.

Ultimately, it’s consumers who will foot the bill. As one expert put it, “Automakers and parts suppliers are not charities. They’re not going to absorb the cost.” So whether you’re eyeing a Ford, a Subaru, or a BMW, your dream car could soon come with a much steeper price tag.

Trump’s Tariffs Could Make Cars More Expensive — Fast
https://www.99newz.com/posts/trump-tariffs-car-prices-2774
Author
99newz.com
Published at
2024-12-16
License
CC BY-NC-SA 4.0