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Trump make cars more exponsive

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Congratulations again to the single-issue anti-inflation Trump voters:

New cars will probably become much more expensive in the United States after President Trump imposed a new 25 percent tariff on foreign-made cars.

Cox Automotive, a research firm, estimates that tariffs would add $6,000 to the price of a car made in Mexico or Canada, two of the top exporters of vehicles to the United States. Affected models include the Toyota Tacoma pickup, gasoline and electric versions of the Chevrolet Equinox, and several models of Ram pickups. Ram is owned by Stellantis, which also produces Dodge, Chrysler and Fiat vehicles.

In addition to Canada and Mexico, the United States imports many cars from Japan and South Korea. Smaller numbers come from European countries, including Germany, Italy, Sweden and Britain.

Higher prices will deter buyers and force automakers to curtail production, said Jonathan Smoke, chief economist at Cox Automotive. He forecast that U.S. factories would produce 20,000 fewer cars per week, about 30 percent less than usual.

“By mid-April we expect disruption to virtually all North American vehicle production,” Mr. Smoke said on Wednesday during a conference call with clients and reporters. “Bottom line: Lower production, tighter supply and higher prices are around the corner.”

So at least we’ll also get a reduction in employment in the auto manufacturing sector in compensation!

Of course, there is one particular domestic auto manufacturer with less integrated production who stands in isolation to benefit, making boycotting his company more important.

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