Since reclaiming the presidency on January 20, Donald Trump has implemented a series of tariffs that are set to significantly impact the U.S. automotive industry. Experts warn that these tariff policies could drive up car prices by several thousand dollars, placing a heavier burden on American consumers.
Within the first month in office, President Trump introduced three major rounds of tariffs targeting Canada, Mexico, and China. The initial tariffs imposed 25% on imports from Canada and Mexico, and 10% from China, though the tariffs on Canada and Mexico were temporarily postponed. The second round saw a 25% tariff on imported steel and aluminum from multiple countries, including those in the European Union. The latest move involves reciprocal tariffs applied to all countries.
Economists caution that these tariffs are likely to increase costs for U.S. consumers, especially in the automotive sector, where domestic manufacturing capacity is limited. Market research indicates that the average price of a new car, currently around $49,740, could rise to over $54,500—a nearly 12% increase—if the proposed tariffs take effect.
Benchmark analyst Cody Acree highlights the vulnerability of the auto sector, noting the complexity of the supply chain and the significant trade dollars involved. \"We believe the Auto sector is the most exposed to the risks of increased tariffs,\" Acree stated, emphasizing the potential for substantial price hikes and economic strain on both manufacturers and consumers.
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Trump tariff policy to further drive up U.S. car prices by thousands
cgtn.com
