BY C STONE | STONE NEWS NETWORK ||| WASHINGTON, D.C.
President Trump has announced a 25% tariff on foreign automakers, on all cars and light trucks not made in the United States, along with certain auto parts. They take effect on April 2.
“This will continue to spur growth that you’ve never seen before," Trump said from the White House on Wednesday, signing an executive order putting the tariffs in place.
Some automakers build vehicles in Canada or use parts made in Canada - which could also be affected by these tariffs.
They include:
- Engines
- Transmissions
- Power Train Parts
- Electrical Components
Vehicles and parts are going to get at least 25% more expensive for American consumers.
From Yahoo:
"In our view these initial tariffs (if they hold in their current form) would be a hurricane-like headwind to foreign (and many US) automakers and ultimately push the average price of cars up $5k to $10k depending on the make/model/price point," Wedbush analyst Dan Ives wrote late Wednesday night. "We continue to believe this is some form of negotiation and these tariffs could change by the week... We expect to learn more over the next week but for now investors will be frustrated by this announcement with few details."
The scope and depth of these tariffs won't be fully known until we approach the April 2 deadline. No one from the Trump Administration has said anything about exemptions or reductions in the tariffs. This spells bad news for American and Canadian consumers who rely on parts from abroad.
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