Trump Proposes New Tariffs on Auto Imports, Stirring Industry Reactions
President Donald Trump has announced a new set of tariffs on imported automobiles and automobile parts, aiming to protect the U.S. auto industry from what he describes as unfair trade practices. The proposed tariffs, detailed in a recent White House statement, would impose a 25% duty on cars and a 10% duty on auto parts entering the United States.
The move has sparked a variety of reactions from automakers and industry analysts. Ford and General Motors have expressed concerns over potential price increases for consumers and the possibility of retaliatory tariffs from other countries. The New York Times reported that some industry leaders fear these tariffs could disrupt global supply chains and negatively impact the competitiveness of U.S. automakers in international markets.
According to Axios, the Trump administration's rationale for the tariffs is to counteract the subsidies and other advantages that foreign automakers receive from their governments. Critics argue that these tariffs could lead to a trade war, further complicating the already tense international trade environment.
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Will car prices rise with tariffs?
But industry experts expect the opposite: Prices will rise for manufacturers and customers. Estimates about the impact of tariffs on production costs range between $3,500 to $12,000 or more per vehicle, depending upon the model, according to the Anderson Economic Group, a Michigan-based think tank.
Will Trump tariffs affect car prices?
Autos Drive America, a group representing major foreign automakers such as Honda, Hyundai, Toyota and Volkswagen (VOWG.DE) , opens new tab, said the 'tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and ...
How much will cars go up with tariffs?
'If a 25% tariff is imposed, prices could increase by as much as $12,000 for some models, or as little as $4,000 for others, in both cases a cost that will almost certainly be passed on to US buyers,' Autoweek said.
How many cars are imported to the US?
The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales. Mexico is the top supplier of cars to the US, followed by South Korea, Japan, Canada and Germany.
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