How US tariffs will have big impact on car prices globally –Report

*Expert says vehicles are just one of the consumer products that will get more expensive under United States President Donald Trump’s tariffs, notwithstanding the 30-day pause on tariffs against Mexico and Canada, in North America

Isola Moses | ConsumerConnect

Despite a 30-day pause in 25 percent tariffs on Mexico and Canada, an automotive expert has said the eventual tariffs will negatively impact car prices worldwide.

ConsumerConnect gathered that most domestic brands would feel the impact

Vehicles are just one of the products that will get more expensive under President Trump’s tariffs, notwithstanding the 30-day pause on tariffs against Mexico and Canada.

It is recalled President Trump agreed to the pause after Mexico agreed to send 10,000 troops to the US border and Canada made similar concessions.

US automakers have plants in both Mexico and Canada, so technically these American cars and trucks are imports and would be subject to the new tariffs, agency report said.

Speaking on the development,

Karl Brauer, Executive Analyst at iSeeCars, said the financial impact on US car buyers would largely be determined by how long the tariffs remain in place.

Brauer stated: “I suspect Trump doesn’t want to impose 25 percent tariffs indefinitely, though he likely will impose some level of new tariffs permanently.

“I see this as a negotiation tactic meant to alter various policies with foreign countries and expect the tariffs to moderate somewhat as negotiations continue.”

On the short-term impact of the Trump White House tariff hike regime, Brauer also said he expected automakers to quickly evaluate their options to control costs.

The expert further opined this could range from shifting production locations to altering product plans as companies try to determine the least disruptive, most cost-effective changes to vehicle operations.

He noted:

“I would expect U.S. plants and suppliers to see more demand in both the near term and long term.”

American car shoppers may be hard-pressed to find a brand that isn’t impacted by the tariffs, report said.

The Executive Analyst at iSeeCars said Brands that depend heavily on Canada and Mexico for production, including Ford, GM, Honda, Nissan, Stellantis, Toyota, and Volkswagen, might face the most pressure to jack up car prices.