After introducing duties to all imported cars, you can expect price increases both new and used cars due to the increase in demand and a decrease in supply. According to experts, the customs war caused by Donald Trump will feel severely Voters with lower income, who in the last election massively supported the president.
As Reuters notes, new cars at a price of less than 30,000 dollars are already rare, because the average price of a new vehicle is approaching 50,000. dollars. Analysts say that the only way in which car manufacturers can squeeze profits from economic cars is their production in countries with lower production costs.
COX Automotive estimates that customs in the amount 25 percent They will raise the price of a vehicle produced in the USA by 3000 USD, and in Canada and Mexico by 6000 USD.
Only one cheap model is produced in the USA
The Reuters agency looked at two research companies from the automotive industry. The analysis showed that the vast majority of cheap cars in the USA are imported. Total Only 16 models had an average catalog price lower than 30 thousand. dollars. In this price group there was only one model (Toyota Corolla), which is mounted in the United States. The remaining 15 models are produced in Mexico, South Korea or Japan.
According to industry analysts, the price of cars will increase to a level that will make them unattainable for many customers by 25 % duties, which will affect the decrease in sales. In the most drastic case, this may cause some car manufacturers to completely give up the production of cheap cars for the American market.
Used cars will also get more expensive
In a statement for the Reuters agency, Fiorani himself, the vice president of the research company AutoforeCast Solutions noticed that all new vehicles will be more expensive, and this will make more buyers enter the market of used cars. In this situation, less supply and increased demand will also increase the price of used vehicles.
Proponents of Trump will painfully feel the introduction of duties
The political base of Trump’s supporters who live onAnd the villages can be among those who will bear the burden of import taxes. According to the Edison Research survey, about half of the voters who report Household income below 50,000 dollars a yearsupported the selection of Trump in 2024, just like 56 percent voters without higher education – reminds Reuters.
Meanwhile, Trump said on Saturday in an interview with NBC News that he did not care that car manufacturers would raise prices, because in his opinion, “if the prices of foreign cars rises, customers will buy American cars.” Trump claims that the duties will cause a boom in the American car industry. Experts who claim that High import taxes will have the opposite effect.
But are the imported cars really foreign?
Many of these imported cars are produced by American producers. There are three vehicles below 30,000 on the imported car list. dollars from General Motors: Buick Envista and Chevrolet Trax and Trailblazer.
All three are produced in South Korea. GM also produces hundreds of thousands of its popular full -size trucks in Mexico.
Ford produces its cheapest vehiclescompact maverick truck and medium -sized Bronco Sport, in Mexico.
