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How Trump’s Canada and Mexico tariffs risk higher prices on cars

How Trump’s Canada and Mexico tariffs risk higher prices on cars


president Donald TrumpDecision to impose a 25% tariff In all imports that come to the US from Canada and Mexico will touch thousands of products in many industries. Apan gilauman nga maghatag usa ka partikular nga industriya sa US Auto, pagdugang linibo nga dolyar sa gasto sa usa ka bag-ong awto, nga adunay mga panukiduki nga adunay mas taas nga presyo, adunay mga potensyal nga sangputanan sa mas taas nga presyo, adunay mga potensyal nga sangputanan sa mas taas nga presyo, adunay mga potensyal nga sangputanan sa mas taas nga presyo, adunay mga potensyal nga sangputanan sa mas taas nga presyo, adunay mga potensyal nga sangputanan sa mas taas nga presyo, adunay mga potensyal nga sangputanan sa Higher prices, have potential results at a higher price, have potential results at a higher price, have potential results at a higher price, have potential results in higher prices, with potential results at a higher price, with many consequences of jobs.

With millions of car parts and vehicles flowing between Canada, Mexico and US each year, tariffs are estimated to have the cost of North America at $ 4,000, according to an analysis of Anderson Economic Group. Even the vehicles gathering in the US will face a higher cost, because their parts are imported from Canada and Mexico and subject to new tariffs.

“If I were a consumer and had an eye on a particular car and I found it in the inventory, I would buy it as long as the price was longer than a month,” as Patrick Anderson, leader of Anderson Economic Group.

At least some of the higher costs are likely to pass on consumers, as he is, because automakers have already operated in relatively thin margins. Car prices are on high records, have increased 34% Since 2019 to one Average selling price of nearly $ 50,000. Also used car prices when the supply of old cars go because the higher price inspires Many Americans Place the upgrade to their car.

The cars and their parts are free to flow between Canada, the US and Mexican for decades because the chain of automotive supply. The cars made in the US have parts from Canada and Mexico, while US segments are used in cars gathering on the border and later Sent back for selling American consumers.

“Parts travel free, and that is only part of the assembly process of a vehicle,” says Sam Fiarani in autoforio parts of a Michigan or Ohio and Vice Versa. How is the business plan developed in the last half century or more. “

Commerce Secretary Howard Lutnick contends the idea that tariffs bring a higher price for consumers in an interview on Tuesday CNBC.

“The tariffs are not, do not cause inflation,” Lutnick said. “A product can be more expensive and a product can be less expensive. China has the highest tariffs in the world, and they have no inflation. The only conceptuality. The fact that we have been in the world.”

Trump said he placed tariffs in place, in part, to force countries to stop those who have never been fried immigrants and fentanyl to enter the US by their boundaries. More than 107,000 people Died from medication over 2023, according to the administration of medication enforcement, At approximately 70% of the dead from opioids, including fentayyl. Almost all 21,900 pounds of fendanyl acquired by 2024 in the southern border, with 43 pounds of fentanyl acquired by the northern border, according to data from customs and border protection.

but Trump also said the tariffs that encourage companies to relocate production from Canada and Mexico to the US in a Social Media Post, Trump wrote, “If companies move to the United States, no tariffs !!!”

Moving to make US car production can come about years and comes with higher costs for materials, materials, and healthcare – all factors that can also cause a higher price for car buyers.

“Usa sa mga hinungdan nga daghan sa kanila ang nagtinguha sa pagbalhin sa produksiyon sa Mexico tungod kay ang mga gasto sa labor mas barato, ang gasto sa pag-atiman sa trabaho mao usab,” miingon ang mga gasto sa panglawas, “miingon ang mga gasto sa panglawas,” miingon ang mga gasto sa panglawas, “miingon ang gasto sa panglawas,” miingon ang mga gasto sa panglawas, “miingon si Aaron Bureau, Detroit Bureau Chief alang sa Cars.com. “Dili usa ka barato nga butang For these automakers to do and at the end of the day it will return to consumer, all costs will be passed. “

For automakers, higher costs from tariffs can lead to higher prices that can cause consumers to reject purchases. That, in turn, lead to a drop of production of new cars and ultimately a reduced job, bragman said.

“If people stop buying cars because they are so expensive, or they start delaying these purchases while they are more expensive cutting plants,” Brogman said. “And that has a knocking effect. If you start watching plants without using people, local communities will start to be affected.”

The United Auto Workers, long-to-break the Deal-Trade Deal in Canada and Mexico said in a statement on Tuesday that Trump’s Latest action of tariffs, called this “powerful tool in Toolbox for taking injustice to anti-worker trade deals.” (The union before Trump’s tariff plans are criticized earlier in his administration.)

“We are pleased to see a president of America doing aggressive action at the end of the free trade disaster dropped like a class pump,” as the statement. “There are many talks with these tariffs ‘disturbing’ in the economy. But if corporate America chooses the price-gouge of the American consumer or an American workman because they do not want to pay their fair part, Corporate America has a blame decision.”

However the automakers warned that tariffs can override their supply chains. Ford CEO Jim Farley warned the last month the threat of tariffs created the auto industry riots and becoming a harmful result for American automakers.

“We will be truly honest, long, a 25% tariff across Mexican border and Canadian blows a hole in the US that we have never seen,” Farley said in an invelingor conference last month.

In Livonia, Michigan, Alphausa, making more than 200 million parts of Automotive a year for US tubes as its tariffs supported by its chain.

While parts of the company are made of Michigan, some substances in parts, such as steel or wires, from Canada. The company also sent plants in the assembly in Canada and Mexico and purchased some goods from Canada. This has been informed by some suppliers that their prices climb as a result of tariffs.

“I can’t imagine the tsunami that they can be under these costs,” says Japhausa President Chuck Dardas. “It goes to us, then we need to deal with it. These suppliers we have, unfortunately, if we do not do what they ask, and the last thing we do is make us our customers.”

High prices for car parts and cars can also increase the cost of insurance cars if insurers should pay more for repair parts and replacement vehicles, according to a vehicle analysis by S & P Global. Progressive CEO Tricia Griffith said in a conference call on Tuesday inspected the insurer how the tariffs impact changes for higher costs.



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