Trump’s Steel and Aluminum Tariffs: How Will They Affect Car Prices?
Written by
Nicholas Morine
Edited by
Jenna Klaverweiden
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With President Donald Trump having enacted broad tariffs on the import of foreign steel and aluminum into the U.S. on March 12, several onlookers have speculated as to the impact that these trade policies may have on various consumer goods, particularly vehicles.
Here are more details on these tariffs and how they could affect car prices.
Also see why Warren Buffett thinks tariffs are an “act of war.”
Car Prices Might Increase
Citing data from Anderson Economic Group, CNBC indicated that the steel and aluminum tariffs could add an additional $250 to $2,500 to the cost of “nearly all models.”
However, Trump also recently signaled that a further 25% tariff on all cars imported stateside is to go into effect on April 3, and on top of that, a 25% tariff on foreign-produced car parts is slated to go into effect, per CNN.
Goldman Sachs estimates that the tariff on imported cars could cause an increase in car prices between $5,000 and $15,000 per vehicle, as reported by CNN.
Trump Wants a Shift to American-Made Cars
In a recent interview with NBC News, Trump was asked what his message was to CEOs helming the world’s largest auto companies, as well as whether he’d warned them against making significant price increases in response to his tariffs.
“The message is congratulations, if you make your car in the United States, you’re going to make a lot of money. If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff,” Trump said.
When asked specifically whether he had pressed automaker executives to avoid enacting price hikes, Trump answered that he had not done so. “No, I never said that. I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump added.
While Trump’s intention is to boost American manufacturing, not all agree with his stance. Sen. Rand Paul, for example, criticized the president’s current trade stance.
“International trade since [the second world war] has made us phenomenally rich,” Paul said during a radio appearance, as The Guardian detailed. “He says, ‘We’ve been taken advantage of.’ But I really strongly disagree because trade has made us so rich and really has made the world a better place … The more we trade … the less we fight.”
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