We’ve already done this once, but that was for a different set of tariffs. Now President Donald Trump has new tariffs on foreign cars and parts set to go into effect next week.
Let’s take another peek at some data, thanks to Cox Automotive.
It might seem like the math is simple — a 25-percent tariff on a $50,000 car would add $12,500 to the price. But automakers might be willing to absorb some cost in order to move metal. Not only that, but car sales don’t happen in a vacuum — automakers need to adjust to the competition’s pricing and what consumers will be willing to pay.
Further adding to the confusion is that even vehicles built on American soil might be affected. Some parts come in from overseas and will be slapped with tariffs — and that will affect the price of cars that would otherwise seem immune to tariffs.
It’s hard to predict exact numbers — but one stands out. That’s $5,300 — affordable cars under $30,000 could have the price increase by that amount.
Other numbers that stood out — the average transaction price of a new car might finally leapfrog past $50,000, according to Cox. And the seasonally adjusted annual rate forecast of 15.9 million units might be adjusted downward.
One Cox employee posted on LinkedIn that 40 percent of vehicles with a starting price of under $40,000 will be impacted and 10 of the 20 vehicles with a starting price under $30K will see significant impact.
Still, it’s hard to say with certainty how much the price of a new car will increase. That said, one thing is certain — the price will go up.
[Image: Robert V Schwemmer/Shutterstock.com]
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