Trump’s Tariffs Leave Automakers With Tough, Expensive Choices
Carmakers are likely to face higher costs regardless of how they respond to President Trump’s 25 percent tariffs on cars and auto parts.
It Is Happening Every Day, Every Where
Carmakers are likely to face higher costs regardless of how they respond to President Trump’s 25 percent tariffs on cars and auto parts.
With sweeping auto levies, the president is putting his beliefs about tariffs into practice on the global economy. Economists aren’t optimistic.
The scale of the damage depends on the circumstances of each company’s supply chain.
The United States is a crucial export market for the German auto industry, which is already suffering from weak sales and increased competition from China.
The measure, which is intended to bring car factories to the United States, could significantly raise prices for consumers.
Carmakers’ declines extended in after-hours trading on the news of 25% tariffs on imported vehicles. The drop reflected concerns about inflation.
The drop reflected market volatility fueled by President Trump’s whiplash on trade and concern that sweeping tariffs could reignite inflation and slow the economy.
The president is expected to announce tariffs on foreign cars on Wednesday, a measure that could bring car factories to the United States but raise prices for consumers.
The president plans to wield tariffs like financial sanctions, ordering that countries that buy Venezuelan oil have tariffs put on their exports to the United States.
Hyundai already makes cars in the United States, in Georgia and Alabama.