Car production is a complicated process involving complex supply chains. Manufacturers in the USA often import parts imported from China, Mexico and Canada. For this reason, Trump’s customs will probably raise production costs, which will also increase the prices of new vehicles for consumers, according to AEG data.
Trump duties
From April 2, a duty of 25 percent will apply to cars imported from Canada and Mexico. In the meantime, other Trump tariffs that are already in force may begin to influence the prices of cars.
On March 4, the US administration introduced a total duty of 20 percent. for imports from Chinaand then, from On March 12, 25 percent came into force. duties on steel and aluminum.
Despite such drastic tariffs, the price increase from Monday seems unlikely, but AEG expects that in the following part, this is very likely.
How much will the cars go?
If the proposed 25 % rate For the import of vehicles from Mexico and Canada will come into force, Prices of new cars can increase by up to 12.2 thousand. USDevaluates the Anderson Economic Group. This respect also includes likely retaliation duties from Canada, Mexico and China.
Anderson Economic Group estimates that even without these tariffs, prices are expected due to other tariffs already introduced, including steel tariffs, aluminum and China. However, according to AEG, the general impact of these tariffs The final price of cars will probably be smaller.
Anderson Economic Group estimates regarding the increase in prices resulting from Trump tariffs:
- At 25 % tariffs Most models mounted in North America can increase by $ 4000-10,000 per vehicle.
- As a result of the same duties, 25 percent Prices will increase the prices of vehicles completely electricH, which are largely based on imported batteries and electronics, may increase even at $ 12,200
- No duties on Canada and Mexico cars prices may increase by over $ 2,000 for some models produced in North America
- Duties on steel and aluminum in the amount of 25 percentcan increase the prices of all new cars an additional $ 250-2500 per vehicle.
