US President Donald Trump has expressed a surprising level of indifference to the potential impact of his planned tariffs on car prices, stating that buyers will opt for American-made vehicles over foreign brands. Despite this, experts warn that the 25% tariffs on imported cars and auto parts could increase prices by thousands of dollars.
The tariffs, set to take effect on Thursday, are expected to affect not only foreign-made vehicles but also US companies like Ford Motor and General Motors, which assemble many vehicles in Canada and Mexico. Nearly half of all new vehicles sold in the US are imported, and around 60% of auto parts in cars assembled in the country.
A study by the Yale Budget Lab predicts that tariffs could raise average vehicle prices by 13.5%, or an additional $6,400 per car. Shawn Fain, president of the United Automobile Workers union, notes that while tariffs may motivate some companies to bring jobs back to the US, they are not a solution for good-paying union jobs.
Senior trade adviser Peter Navarro defends the tariffs, suggesting that they will raise around $100 billion and provide tax credits for car buyers. However, critics argue that Americans should be concerned about the impact of the tariffs on prices and jobs.
Source: https://www.nytimes.com/2025/03/30/us/politics/trump-auto-tariffs.html