Why Trump's 25% Auto Tariffs Won't Work
Car prices are 25% higher than pre-pandemic levels & interest rates are higher. Trump's tariffs will cause a 16% rise in US car prices & lead to plant closures due to reduced demand.
The 25% tariff on all imported cars and parts to the US goes into effect on Thursday, April 3rd. While the Trump Administration thinks this will “reshore” auto production to the US, it has a greater chance of causing auto demand to initially come to a complete stop and cause uncompetitive carmakers in the US to shut down their factories. Roughly half of…