Trump’s tariffs are ‘a debacle of epic proportions’ for the auto industry
âLiberation Dayâ has arrived. Get ready to be liberated from affordable vehicle prices.
As promised, President Donald Trumpâs 25 percent tariffs for imported vehicles went into effect Thursday, sending the auto industry into full panic mode. Some analysts are predicting a $5,000 to $10,000 price hike on new cars out of the gate, while others are still struggling to wrap their heads around the logic of Trumpâs auto tariffs. It was a nuclear-level threat for the already unsettled auto industry, with little relief in sight.
Trumpâs argument is relatively straightforward, if nonsensical: Donât like the tariffs? Just buy an American-made car. The only problem is that there is no such thing. Even vehicles made in the US rely on a complex supply chain that runs across borders and through multiple nations. The average car contains roughly 30,000 individual parts. Even cars produced domestically obtain 40â50 percent of their parts from abroad, according to Dan Ives, the global head of technology research at Wedbush Securities, a financial services firm.
âThe tariffs are a debacle of epic proportions for the auto industry and US consumers as the concept of a US made ca …