- Automatic stocks including General Motors and Stellantis They fell on Wednesday when manufacturers expected the last announcement of President Trump. The Dow The Jones Auto Auto manufacturer's car manufacturer's index dropped by 5%while Elon Musk's Tesla It was 5.6%. The industry estimates estimate the price increase of up to $ 10,000 due to impact from fees.
President Trump pushed forward with new tariffs on foreign cars and light trucks 25%, announced on Wednesday from an oval office. The new tariffs will be launched on April 2.
“This will lead to the construction of many plants, in this case a lot of cars,” Trump said during a press conference. Trump said he expects tariffs to support the increase in the US production in the US to reduce consumer prices. He also suggested that the White House could move forward with plans to allow consumers to deduct interest interest on car loans from tax accounts if the car is produced in the US
“I think our car business will flourish, as if it has never flourished before,” Trump said. He said the “very strong” police would go along with 25% cars. “That's permanent. 100%,” Trump said.
The tariffs were originally ready to enter on 4 March, but Trump later announced adjustment Regarding imports from Canada and Mexico to reduce the compression of US car manufacturers and give them time to prepare. Administration imposed 25% of import fees for goods from Canada and Mexico, but allowed a pause for cars and goods traded Through the North American Trade Agreement of the USMCA. Trump then set a deadline for 2 April to announce other mutual tariffs and tariffs on cars imported to the US, but turned the course and canceled the announcement of tariffs a week earlier.
The wizarding time of the postponement of 25% of cars and parts of cars came after Trump talked to representatives of Ford, General Motors and Stellantis. Trump also expanded the deadline for other goods from Mexico and Canada. At that time, Trump told the company to “start investing, start moving, moving here.”
However, experts have stated that the expansion of automatic parts with steel and aluminum will lead to the hefty costs for consumers, car manufacturers and their suppliers. In addition, adjusting the supply chain of production often takes years, not weeks, experts have said. About one of five cars and trucks sold in the US was built in Canada or Mexico, Associated Press reported. In 2024, the US imported US $ 79 billion and Canada by 31 billion dollars. As for automatic parts, imports worth $ 81 billion were created in Mexico and $ 19 billion from Canada.
“The tariffs that announced today will damage – will not help – the American automotive industry, threatens many American jobs and leads to exclusion from automotive production in the United States,” said John Murphy, senior vice president of the US Chamber of Commerce. Luck. “These automotive tariffs come to the top of the tariffs on steel, aluminum and goods from Canada and Mexico. With other mutual mutual tariffs expected 2. April are stacked tariffs in the automotive sector.”
Ken Kim, Head of Ekonom in Kpmgwrote on Wednesday note These orders for vehicles and parts in February jumped by 4%, which is the most significant increase in three years. The rise was due to the fact that in the automotive industry it was in front to block prices before the tariffs could be manifested. The estimates of the sectors have established an increase in the price of new vehicles ranging from approximately $ 2,000 to $ 10,000 or more, which would be an increase of 20% of the average transaction price of $ 48,500, Kim wrote.
“Consumers are already winding increased inflation,” Kim wrote. “Talk about the shock of the sticker.”
According to Kim, the expenditure has decreased by 0.3%, which is the most important decline in seven months and is due to uncertain economic outlook.
“The decline could be a timely indication that the leaders' leaders are retreating back to future capital expenditures due to an uncertain tariff environment.
According to Scott Lincicome, Vice President for the General Economy in Libertarian Think Tank Cato Institute, car tariffs would not only increase car prices, but would hurt us established cars. Automotive industry experts have long been recognized that free trade and investments promote the growth and stability of the automotive industry since the age of 90, he wrote.
“That's why Trump threatened new automotive tariffs in 2018, basically every major US business group – a alliance of car manufacturers (which includes Detroit cars), a global car association, an association for engine manufacturers and equipment located here.
This story was originally listed on Fortune.com
