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In his inaugural address as President of the United States, Donald Trump criticized the previous administration of Joe Biden, blaming their “destructive policies” for the historic inflation crisis facing Americans. Fast forward two months, and Trump’s new tariff policies threaten to increase the price of conventional cars by a significant margin of up to $16,000. Despite this, Trump remains unfazed, stating that he “doesn’t care” about the potential price hike.
“I hope they [car manufacturers] raise prices because if they do, Americans will buy American cars. We have a lot of cars,” Trump asserted in an interview with NBC News. He further enticed car manufacturers to produce vehicles in the United States, promising lucrative profits. “If not, maybe you have to come into the United States, because if you build them in America, there’s no tariff,” Trump emphasized.
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However, Carscoops points out that cars manufactured in the US still rely on imported parts, which are subject to the 25% tariff. This means that car prices are likely to increase across the board, regardless of whether the vehicles are made in America or elsewhere. At present, the impact of the new tariff policy is not entirely clear. The import tax is currently being paid by the car companies themselves, contrary to the Trump administration’s claims that the countries involved would bear the burden.
Car manufacturers are faced with a choice: pass the additional cost on to their customers or absorb the loss to maintain sales. Trump, however, indicates that the tariffs are here to stay, stating that the 25% tariff on imported cars is a long-term policy.
Recommended Reads for Your Next Road Trip
Our Automotive section presents a selection of captivating books with diverse themes. During those moments of rest and relaxation on your journey, a good book can be an engaging companion.
The Great Automotive Standstill: A Tale of Ports and Perils
Automobile manufacturers have opted to halt operations or remain stagnant, anticipating a shift in policies from former U.S. President Donald Trump.
The Great Luxury Car Exodus: How Tariff Troubles are Driving Brands Away from the American Market
The “tough” tariff policies implemented by the Trump administration are having a tangible impact on the automotive industry in the US.
Trump Proposes 100% Tariff on Canadian Automobiles
The statement by President Trump underscores a desire for cars sold in America to be made in America. It hints at a vision where domestic production takes center stage, reflecting a commitment to boost local manufacturing and create jobs within US shores.
Make America’s Affordable Cars Great (and Expensive) Again
The proposed tax policy could see the average price of a new car in the US surge by an estimated $3,000.
Toyota Sponsors $1 Million for Donald Trump’s Inauguration
In addition to Toyota, automotive giants Ford and General Motors also sponsored similar amounts for the inauguration of the new US President.
