President Donald Trump has announced a series of “reciprocal tariffs” aimed at boosting domestic manufacturing. The new import taxes vary widely and are based on a laundry list of different factors, including various taxes placed on U.S. goods by other nations. The new round of tariffs follows an announcement made last month that new vehicles imported from outside the U.S. would be subject to a 25-percent tax.
Per a report from Automotive News, every U.S. trading partner will face at least a 10-percent tariff, with higher rates imposed on specific nations. That includes a 34-percent rate on goods imported from China, a 24-percent rate on goods imported from Japan, and a 20-percent rate on goods imported from countries in the European Union. Meanwhile, Mexico and Canada were notably exempt from the today’s tariff announcement, but are still subject to an existing 25-percent tariff announced previously.
“We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers,” Trump said, adding that more domestic manufacturing would ultimately lead to increased competition and lower consumer prices.
Nevertheless, industry analysts have voiced serious concerns, stating that prices are expected to skyrocket as the new taxes go into effect. Automakers are already bracing for a 25-percent auto import tax set to take effect on April 3rd, 2025, and will initially apply to fully assembled vehicles and expand to cover individual automotive components by May 3rd. Demand for new vehicles is expected to plummet as consumers reeling from high prices react to the newly added costs.
Analysts predict that vehicle prices could rise between $2,500 and $20,000 per vehicle, depending on the vehicle type, where it was assembled, and the parts content. Automakers are already reacting, with Volkswagen halting rail shipments of vehicles from Mexico, as well as putting in place plans to increase vehicle sticker prices to reflect added tariff costs. Other manufacturers are evaluating how the tariffs could affect operations, sourcing strategies, as well as pricing structures across North America.
Meanwhile, GM CFO Paul Jacobson has previously stated that General Motors has a good playbook with regard to navigating new tariffs enacted by President Trump.
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sincere saw the list for 185 countries, and sincere he is right, though he is asking the half ,,, me in his position would ask the same … for example the africa country ask 98 % … he asked 50 %… i would ask the same 98 % for mango and other fruits, anyway several countries just ask 10 % which is fair he asking same 10 %
A few days ago, GMA carried an article about the proposal to allow deductions on car interest payments when you buy an American built car. That seems like a better way to incentivize buyers to buy American built cars. Tariffs won’t work because manufacturers will wind up raising prices evenly across the board to make up for the tariffs rather than kill sales on their imported cars by raising them 25%..
Point really is that cars that are made in America will be sold in bigger quantities. Many factories right now stateside run only 1 shift and every other week it’s seems GMA reports a shutdown for “slow demand”. Kias, Hyundais, and GM and Ford’s Chin@ cars will cost as much as an American made CUV, so people will just buy those instead. Most of those and the trucks are 90% made in the USA, so the total cost increase will be 2-3%, which is a lower increase than we’ve seen year over year here as of late.
However, many industries like the steel companies that provide Ford/GM will be in boomtown, as will Goodyear (great time for buying their stock) as they no longer have to compete with the cr@p coming out of the far east. They will ramp up production and hire tones more consumers to boost the economy. Ditto with other industries like apparel where companies like redwing and American Giant have been focusing strictly on high end products as they struggle to compete with the cheap junk from overseas. This will be a big long game boom for the blue collar worker, and most industries will realign in the coming months to avoid the biggest tarrifs. American Giant can provide an all American made T shirt for 12$ at Walmart. Who would have imaged the cheapest shirt tomorrow will be American made!
You wrote, “They will ramp up production and hire tones more consumers to boost the economy.”
Leaving aside the spelling, no one hires consumers. We hire workers. We attract consumers.
Making vehicles more expensive will not necessarily lead to higher sales. That is only likely to happen if the economy is doing well and people can afford to continue to borrow money. Vehicle sales declined by 35% during the 2008-2010 recession.
How much prices will increase remains to be seen, but they will go up if materials are taxed an additional 10-25% via tariffs.
Prices won’t go up. Seems like every other month we get a story about how an OEM is violating their UAW contract with keeping only 1 shift or is shutting down for 2 weeks due to “lack of demand”. All this will do is force OEMs to ramp up stateside production, and people will instead of buying Kias/Hyundais, will buy American made CUV’s. Ironically, this might be what saves Nissan 😂😂😂. Most those vehicles 90% are made stateside, so their price increase will be 2-3% which is ironically lower than we saw over the last @dministration.
But what this will really do is shift more production stateside for tires and steel (it’s a good day to buy Goodyear stock) in 6 months it’ll be a good time to be a blue collar worker..
Cooper Tires CS5 Ultra. American made phenomenal tires. Got them on my Rav and will put them on
Goodyear owns Cooper
On local news this morning, the Ford escape plant in Louisville is having a shutdown for 2 weeks to “transition towards more EV capacity”. 🙄 Seriously, small cars like these are the one imported. Just stop all your EV plans and churn these out by the millions till you can ramp up more local production. Sometimes I swear these car companies want to go out of buisness.
But the cap on interest and property Tax is $10,000 on Schedule A itemized deductions effectively neutering any benefit. Most of us cannot enjoy the traditional benefit of deducting mortgage interest and property taxes now. And a renter deducting only auto interest will benefit more from the standard deduction. Unless – UNLESS , the plan is to RAISE interest rates on autos to 26 percent so that interest becomes so high low income people benefit from the deduction, and lenders make billions, everybody wins.
Interest deductions don’t mean anything. The standard deduction is what most people use. Trump thinks he is giving something and once again he is a dummy.
But Trumptards will still believe that they’re getting a tax break, they’re an ignorant bunch. Trump loves the uneducated.
it was unfair with EU,, in fact same 47 % would be fair, 20 % is still too low… for example if u want a bmw or mercedes or poooorsche instead a cadillac, then please pay 200 % more, here in europe we do not have chevriket competing with thos b s bmw not because they are expensive ugly however we paid a fair price for our dacia produced in marrocos
Need tariffs on those 2.7s next.
I voted for this.
Get ready for the layoffs
1930s U.S. (Smoot-Hawley Tariff Act): Raised tariffs during the Great Depression to “protect American jobs.” Instead, it deepened the crisis as trade partners retaliated, global demand dropped, and prices rose.
Yes. That’s what the teacher said when Ferris called in sick.
Despite what the usual Dems say, fair is fair and all these Countries have to do is cancel their Tariffs on U.S. products, level the International Trade Playing field, and the U.S. Tariffs on them will disappear.
I finished the 11th grade and I want a factory job screwing dome lights on Oldsmobiles at 30/hr plus benefits. Those costal elites don’t care about the wife and I trying to raise 5 young ins and another bun in the oven. I love god, guns and Trump. I am not afraid of the left radial lunatic mob who have America
Trump is a dummy. That idiot is destroying this country.
At least a dummy keeps its mouth shut!
Trump and his clown car cabinet pulled their “tariff formula” out of the CHATgPT derriere. We have penguins on an Antarctic island being charged a 49% tariff. I guess its for when they ship their dung over to Mars-a-Lardo.
Nah. What’s wrong with “reciprocal”?