https://www.yahoo.com/finance/news/car-prices-soar-trumps-latest-tariff-plan-192223377.htmlCar prices would soar under Trump's latest tariff plan
President Trump thinks a new tax on imported cars will boost American auto production and bring back thousands of jobs.
He’s about the only one.
As the Trump administration readies a report on imported cars that could be the pretext for new tariffs, economists and industry officials warn of soaring costs for car buyers, a drop in overall sales and a net loss of jobs. Trump said recently that if trading partners don’t agree to his demands, “I’m going to tax their cars coming into America, and that’s the big one.” Big blunder might be more likely.
Trump’s idea is to impose a 20% tariff on imported cars, to encourage more domestic auto production. Imports would become more expensive, so consumers, in theory, would buy more domestic models, and more automakers would build cars in America to escape the tariffs.In reality, the most certain outcome is that prices would shoot up as soon as the tariffs went into effect. Americans buy about 8 million imported cars each year, and a 20% tariff would add $5,000 to the cost of a $25,000 car.
Manufacturers might not pass all of that onto consumers, but the cost of an import would still rise by more than $4,000, on average, according to the National Taxpayers Union.