The coalition for the prosperous American chief economist Jeff Ferry discusses the panic over the tariffs of President Donald Trump on “making money”.
President Donald Trump's tariffs Cars and works of cars will hit some automakers heavier than others, especially among those who have a lower share of their American vehicles assembled outside the US
According to S&P Global Mobility, for example Volvo, Mazda, Volkswagen and Hyundai, which include Brands Genesis and Kia, at least 60% of their relevant US sales in 2024 imported.
Compared to the fact that Ford, Honda, Stellantis and General Motors have the most cars made in the US.
Trump, which considers tariffs to be a way to bring tax revenues to finance its plans to reduce taxes, and on Wednesday announced the revitalization of domestic production On all imported cars.
He stated that these tariffs, of the previously announced 2.5%, would come into force on April 2, expecting to announce their reciprocal tariff plans.
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Trump's administration said on Thursday that the President's step towards the implementation of these tariffs “will protect and strengthen the American automotive sector”. Administration claimed that foreign automotive industries have spread due to “unfair subsidies and aggressive industrial policies” while “US The production stagnated”
Ford Signage in Richmond, California, June 21, 2024. (David Paul Morris / Bloomberg via Getty Images / Getty Images)
Although “some argue that the automotive tariffs can strengthen the production of the US, only GM, Ford and Stellantis have excessive capacity to increase US production and automobile workers are unlikely to be able to carry out so quickly or costly”. “Shift in production would also require suppliers to move.”
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Car experts claimed that tariffs were impairing problems with availability, especially because, according to the National Association of Car Resellers, no 100% vehicles on the domestic market are built or assembled.
As far as the prices of the car is concerned, and the diversity of market forces, In addition to tariffs, it determines how much car prices will fluctuate, according to the executive editor of Autotrader Brian Moody.
Used vehicles for sale in a commercial representation in Colma, California 21 February 2023. (David Paul Morris / Bloomberg via Getty Images / Getty Images)
In addition, it could depend on how many models are in the US compared to other countries. If the manufacturer creates one model in the US and the other outdoors, according to Mooda, the prices can increase prices as well as to absorb tariffs without having a large hit on one particular model. This means that car manufacturers could expand the increase on several models, Moody said.
There is a schedule of car share with the percentage of imported sales
S&P Global data on the percentage of US sales imported. (Global Mobility S&P)
