Your next car purchase is probably going to be more expensive thanks to President Donald Trump.
Around 5.3 million vehicles have been built in Canada and Mexico, 70 percent of which are in luck for the United States. Those vehicles will be soon Under 25 percent tariffWhich was declared only by the Trump administration. And companies paying high price to import those vehicles are very likely to pass that cost with the consumer – you.
Mike Wall, Executive Director of Automotive Analysis in S&P Global Mobility, says, you cannot see high MSRPS immediately. But you will probably look at low encouragement and special deals at the dealership as dealers get stingier about their vehicle inventions. Perhaps fewer vehicles are also made because manufacturers weigh the cost of paying 25 percent of the duties on major parts and components. After all, the high cost of making and selling cars in the US will filter the consumer.
Around 5.3 million vehicles have been built in Canada and Mexico, 70 percent of which are in luck for the United States.
“I can't insist on that,” the wall said. “25 percent of tariffs in this industry are only on a large scale.”
One tariff is tax on goods imported from another country. The Trump administration claims that it is implementing new tariffs on Canada, Mexico and China to prevent the flow of illegal drugs in the US. Often, the presidents use tariffs during trade talks or to protect domestic industries from cheap foreign products (as the biden administration did with electric vehicles from China. But As the new York Times Has notedTrump see tariffs as an important source of revenue for the US, perhaps as a replacement of income tax.
But most economists hope that the result will be of high prices ranging from cloth to shoes, food, cars to cars for a wide range of goods. Trump claims that foreign companies eat high costs, but do not be foolish.
Just listen to companies that will affect the costs. “If we get tariffs, we will pass those tariff costs back to the consumer,” said Filip Daniel, CEO of Autosone in September. As CNN,
Virtually every car company will be affected: Ford's F-Series truck and Mustang with engines made in Canada; Mazda CX -50 from Mexico; Full -sized pickup trucks from General Motors and Salentis; Even Toyota Rav-4.
“25 percent of tariffs in this industry are only on a large scale.”
S&P Global Mobility estimates that a 25 percent tariff on a vehicle of $ 25,000 from Canada or Mexico will be $ 6,450 – most of which will be borne by the consumer.
“As the price rises, consumers get out,” the wall said. “They are going to catch, they are about to wait. They can go to the market used. I will tell you what, if the pricing on the new market increases, what does it feel? It is going to be affected because it is a matter of supply and demand.
Electric vehicle prices can also be affected, especially if the price of some components increases as a result of tariffs. CEO RJ Scarring Rivian Warned recently Tariffs represent a large threat to the EV industry compared to the possible elimination of tax encouragement under Tariff Trump. And while many EV manufacturers are investing heavy in domestic manufacturing for the inflation in inflation of Biden administration, they are still exposed as companies manufacturing combustion engines.
Most vehicle manufacturers say they have casual plans for tariffs, but will not say what those plans are. Ford and BMW spokespersons refused to comment.
The Woakeswagen's publa factory is the largest in Mexico and one of the largest in the Volkswagen group, making around 350,000 cars in 2023, including Jetta, Tiguan and Tos models, all for export to the United States. In a statement, the company said it “remains a strong lawyer for independent and fair trade.”
“We are monitoring the situation and plan for various scenarios,” said the German auto giant. “We expect a sharp resolution on tariffs in North America.”