Car prices could jump $6,000 as Trump's 25% import tariff kicks in

[DragonSlayer101]

In a nutshell: President Donald Trump recently announced an additional 25 percent tariff on imported vehicles and parts, raising concerns about its potential impact on the US automotive sector. While supporters argue that the policy will spur growth, attract investment, and create jobs domestically, critics warn that it will lead to significantly higher prices for shoppers.

The new tariff on imported cars will take effect on April 2, while the import duty on car parts will go into effect on May 3. The components subject to the new policy include engines and engine parts, transmissions and powertrain components, and electrical systems.

The tariff will be applied under the USMCA trade agreement, which was ratified during the first Trump administration. Under the plan, imported vehicles will be taxed only on their non-US content.

For example, a car with 20 percent US-made components under USMCA will face a 25 percent tariff on the remaining 80 percent of its price.

According to Commerce Department data, Mexico is the largest automobile exporter to the US, followed by Japan, South Korea, Canada, and Germany. The biggest exporters of components include Mexico, China, Japan, and South Korea. Unsurprisingly, most foreign automakers and auto parts manufacturers have criticized the new tariffs, arguing that they will negatively impact both manufacturers and consumers.

The United Auto Workers union, however, praised the proposed tariffs, claiming they could create more jobs in the US.

In a statement, the organization described the move as a victory for auto workers and expressed hope that it would be part of a broader "Made in America renaissance." The union added that it believes the tariffs will encourage US automakers such as GM, Ford, and Stellantis to bring much of their production back to the U.S. after decades of offshoring.

Not everyone is convinced, though. According to some industry analysts, the new tariffs could increase the price of an average new car or truck by at least $6,000, as nearly half of all vehicles sold in the US are imported.

They further argue that the policy is a blatant violation of the USMCA, the trade deal Trump himself signed during his first term.

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Car prices could jump $6,000 as Trump's 25% import tariff kicks in

 

[opckieran]

90% of today's new cars are designed to either sell to or attract women. They're plastic junk, you'd be lucky to get more than 8 years or 120,000 miles out of them.

That being said, there's been tons of investments coming into the US since the start of this admin, so an increase in domestic jobs and manufacturing is a positive.

But at the end of the day, our auto market is a joke. Id!otic legislation like CAFE ironically incentivizes the production of id!otically larger (less safe for other vehicles and pedestrians) and thirstier vehicles, our secondhand market has been under assault for years (cash for clunkers, 25-year import restrictions, COVID) and we're missing out on innovations that have been available in the EU for over a decade in some cases thanks to the bloated bureaucracy of the NHTSA. All of this sadly because autos are one of the most highly regulated and interfered-with markets, and voters who are pro-regulation, pro bureaucracy, don't realize that it's the auto manufacturers writing the rules, regulations, and legislation!

 

[axiomatic13]

90% of today's new cars are designed to either sell to or attract women. They're plastic junk, you'd be lucky to get more than 8 years or 120,000 miles out of them.

That being said, there's been tons of investments coming into the US since the start of this admin, so an increase in domestic jobs and manufacturing is a positive.

But at the end of the day, our auto market is a joke. Id!otic legislation like CAFE ironically incentivizes the production of id!otically larger (less safe for other vehicles and pedestrians) and thirstier vehicles, our secondhand market has been under assault for years (cash for clunkers, 25-year import restrictions, COVID) and we're missing out on innovations that have been available in the EU for over a decade in some cases thanks to the bloated bureaucracy of the NHTSA. All of this sadly because autos are one of the most highly regulated and interfered-with markets, and voters who are pro-regulation, pro bureaucracy, don't realize that it's the auto manufacturers writing the rules, regulations, and legislation!

I find your first sentence misogynistic. WTH man? You implied that women want poor quality plastic junk cars. Am I reading you correctly?

 

[Dimitriid]

Trying to bring back some of the most highly integrated international production schemes like fabricating cars is the equivalent of saying 'We need to un-ring that bell!' It's just not possible.

Not only is it not possible to bring car manufacturing back to the US but assuming every single auto maker would take on the challenge, pass down zero dollars to the consumers and still wouldn't implode into brankrupcy, it's still going send the US back to the U.S.S.R. days for example as we know what happens when you try to be an isolated economy inside a global one: you implode. The US made sure that was the faith of the Soviets by convincing the rest of the western world to jump into a globalized economy so why would anyone want that U.S.S.R. faith for their country?

That can only be attributed to malignant and blatant lies or profound ignorance of economic systems. The problem is that is so transparently absurd every country on the receiving end will call their bluff.

 

[The Talking Tech]

Thank the trump supporters for their support at everything going up in price.

 

[Theinsanegamer]

I find your first sentence misogynistic. WTH man? You implied that women want poor quality plastic junk cars. Am I reading you correctly?

No you're not, you want to justify your victim complex by ascribing meanings to words out of context.

You see that PERIOD between "women" and They're"? That shows the sentence ended. It is entirely possible for cars to both be designed to either sell to or attract women, AND for cars to also be made of plastic junk. The former has been true for decades, Men have been buying high end luxury cars trying to attract women since the 70s (the boomer days were full of guys leaving their car keys ON THE COUNTER as they ordered to show off the brand of their ride to prospective partners), and modern crossovers are absolutely designed to appeal to female buyers. Marketing has, by and large, been designed around female buyers for nearly 50 years.

IN ADDITION, cars today have far more plastic parts and parts designed with very narrow tolerances leading to early failure compared to a decade ago, when cars could reasonably be assumed to run far longer then the warranty lasted.

If he wanted the two sentences to be connected to the same subject, he would have used a ";" instead.

 

[Kashim]

That being said, there's been tons of investments coming into the US since the start of this admin, so an increase in domestic jobs and manufacturing is a positive.

It's cute that you believe that, being the typical "I'm trying hard to sound smart" Trump supporter. Auto tariffs are going to do next to nothing to bring back manufacturing jobs. All those plants that were built in Mexico and Canada cost automaker billions of dollars, a cost that they will now have to swallow. Do you really think these companies are going to simply move those plants back to the US and re-hire American workers to fill them at a much higher cost? No, of course not. They're going to cut production and raise prices to try and make up the difference.

I'm sure at some point one of these companies will build a new plant or expand existing plants in the US and hire thousands of workers. As soon as that happens Trump will come out beating his chest to announce a HUGE win for tariffs and convince Fox News viewers that it is now the golden age of American manufacturing once again.

Trump already tried this tariff nonsense with China the first time around. How did that work out? It's been almost 8 years since then, so America's manufacturing sector should be booming. Oh wait.

 

[Theinsanegamer]

Thank the trump supporters for their support at everything going up in price.

Does that mean, by extension, we should be thaning the Biden supporters for the surge in car prices the last 4 years? Or does that not apply?

 

[axiomatic13]

No you're not, you want to justify your victim complex by ascribing meanings to words out of context.

You see that PERIOD between "women" and They're"? That shows the sentence ended. It is entirely possible for cars to both be designed to either sell to or attract women, AND for cars to also be made of plastic junk. The former has been true for decades, Men have been buying high end luxury cars trying to attract women since the 70s (the boomer days were full of guys leaving their car keys ON THE COUNTER as they ordered to show off the brand of their ride to prospective partners), and modern crossovers are absolutely designed to appeal to female buyers. Marketing has, by and large, been designed around female buyers for nearly 50 years.

IN ADDITION, cars today have far more plastic parts and parts designed with very narrow tolerances leading to early failure compared to a decade ago, when cars could reasonably be assumed to run far longer then the warranty lasted.

If he wanted the two sentences to be connected to the same subject, he would have used a ";" instead.

I am a man, how could I be the victim in this scenario you have created? I have no beef with his latter statements on the quality of cars.

 

[Kashim]

Does that mean, by extension, we should be thaning the Biden supporters for the surge in car prices the last 4 years? Or does that not apply?

Kudos on your wonderful whataboutism. The Fox Propaganda Network has instilled their talking points in you well young Padawan.

 

[Kashim]

"Car prices could jump $6,000" Wait, why would car prices jump $6,000? Trump asked car companies not to raise prices, but simply swallow his 25% tariffs. I'm sure they're all going to listen or suffer the wrath of the Orange Imbecile. As soon as Ford or GM announce price increases, no doubt Trump will go on the offensive and attack them relentlessly.

"They further argue that the policy is a blatant violation of the USMCA, the trade deal Trump himself signed during his first term." So what if Trump signed a trade deal? Nothing he did yesterday matters, only what he says/does today that matters. He's like a couch cushion, you can only see the ***-print of the last person who sat on it.

 

[Theinsanegamer]

I am a man, how could I be the victim in this scenario you have created? I have no beef with his latter statements on the quality of cars.

Having a victim complex does not require you to be a target demographic nor an actual victim. The term you may be more familiar with is "professionally offended".

Kudos on your wonderful whataboutism. The Fox Propaganda Network has instilled their talking points in you well young Padawan.

The fact you got angry enough to type like this tells me you know I'm pointing out utter BS but you don't want to admit it.

 

[mgwerner]

I am a man, how could I be the victim in this scenario you have created? I have no beef with his latter statements on the quality of cars.

If you were around more women you would understand the OP's statements are completely true in all regards.

 

[poshflamingos]

Does that mean, by extension, we should be thaning the Biden supporters for the surge in car prices the last 4 years? Or does that not apply?

Inflation and supply chain issues in the past 4 years were worldwide, and a result of the measures every country on this planet took to contain the covid pandemic, it was not unique to the US. Those worldwide events were not caused by one country's president.

The increase in prices you are seeing now in the US are localized to the US and are a direct consequence of Trump's tariff plans. That is not a worldwide event, and it is caused by one country's president.

 

[wiyosaya]

 

[Theinsanegamer]

Inflation and supply chain issues in the past 4 years were worldwide, and a result of the measures every country on this planet took to contain the covid pandemic, it was not unique to the US. Those worldwide events were not caused by one country's president.

The increase in prices you are seeing now in the US are localized to the US and are a direct consequence of Trump's tariff plans. That is not a worldwide event, and it is caused by one country's president.

See, this is an actual adult conversation!

I disagree with the past 4 years. Not about COVID, that is true, but rather that the previous administration did not bear any responsibility for the rampant inflationary period that followed. It took sustained inflation running out of control for them to finally start clamping down on credit, PPP loan abuse was rampant, and various measures from the pandemic were continued for far too long allowing people to accrue huge debts without payment which spurred on ever increasing prices.

By the time we got to 2023, it wasnt the fault of supply chains anymore, it was pure unfiltered greed. 2024 even more so, everyone is still finding excuses to jack up prices and increase corporate profits to record levels while nothing is done to stop them.

I guess we know why you call yourself insane now... The guy clearly said something misogynistic and was rightly called out for it. Your defence of this with a diatribe of bullsh1t is just wasting everybody else's time.

He didnt say something misogynistic, again you have to resort to name calling as an opener. This is how children argue.

 

[wiyosaya]

Inflation and supply chain issues in the past 4 years were worldwide, and a result of the measures every country on this planet took to contain the covid pandemic, it was not unique to the US. Those worldwide events were not caused by one country's president.

The increase in prices you are seeing now in the US are localized to the US and are a direct consequence of Trump's tariff plans. That is not a worldwide event, and it is caused by one country's president.

Thanks, Captain Obvious for that informative post.

 

[yRaz]

Wow, we skipped right past tangents and went straight to invalutes.

 

[Tantor]

Another shallow anti-Trump article.

People don't understand that there are no real US car companies any more. Here's a site that lists all US auto factories and the percentage of foreign content.

https://en.wikipedia.org/wiki/List_of_automobiles_manufactured_in_the_United_States

Ford's iconic F-150 truck has only 30% US content. General Motors is totally pathetic. Their entire lineup hovers around 30%. Stellantis is of course based in Italy.

Most Japanese car companies use way more US content than GM or Ford. For example, Subaru's factory in Indiana uses 50%. I own two Subarus, both build at the Indiana plant.

Trump obviously knows what's really going on. He did not become a billionaire by being financially stupid... The goal is to bring jobs back to the US. Not to protect so-called 'American' car companies like Ford or GM.

 

[BogdanR]

Does that mean, by extension, we should be thaning the Biden supporters for the surge in car prices the last 4 years? Or does that not apply?

Actually you should thank Bush’s administration for that.
Remember the 2008-2009 crisis which was actually longer but that’s another story.
I work in the automotive sector since 2003, so I do remember it vividly.
One of the things which happened then, the automotive industry switched from a 90 days minimum inventory to “just in time” delivery. Most industries followed suit. I do remember our main plant idling for 3 months, people being let go, while senior engineering staff was tasked with optimizing the processes and the plant’s floor for better productivity when the production picks back up. We were part of the lucky ones, our company had a significant cash reserve so we survived.

Fast forward to Covid and the closures it caused. Some of the placed temporarily closed were places which could take weeks or months to re-start. And because of 2008 crisis there was no inventory on hand to cover that significant production gap on re-opening.

So, you had the perfect inflationary storm happening in which people had money to spend but there were no products on the market. Remember the chip shortage? It wasn’t the only one. Metallurgical or heat treatment plants had trouble starting for instance, among others.

It mirrors closely what happens in the GPU market today. There’s no inventory so scalpers can charge whatever the f they want.

And then you had the great friendly leadership of Saudi Arabia unilaterally raising oil prices just in time for the 2022 midterm elections. Funny that, no? It turned what was already a pretty slippery inflationary slope into a toboggan.

 

[Tantor]

90% of today's new cars are designed to either sell to or attract women. They're plastic junk, you'd be lucky to get more than 8 years or 120,000 miles out of them.

You're absolutely correct. Women control 85% of discretionary spending. And despite being 60% of college graduates, they only contribute 29% of actual STEM hard work.

The automotive industry caters primarily to female values. Because women call the shots. They always have.

https://www.forbes.com/sites/digita...men-control-85-of-purchases-29-of-stem-roles/

So this raises the question: how can women be oppressed if they control 85% of purchases, have 1.5 times more college degrees, and work far less hours? And they live 7 years longer.