There are now 25% tariffs on everything made in Canada and Mexico and this could increase to 50%. Trump promised to double the tariffs if Canada and Mexico retaliated and they did.
There was a 2018 study of proposed tariffs in the 10-25% range.
However, cars are now 34% more expensive than in 2018.
The impact will be in about 2-3 months as the inventory on dealer lots is cleared. There are some vehicle makers like Honda who say they will stop selling Mexico made cars to the USA.
2018 25% Tariff Average Price increase for U.S. built-vehicles – $2,279
2018 25% Tariff Average Price increase for imported vehicles – $6,800
2025 25% Tariff Price increase for U.S. built-vehicles – $3,400
2025 25% Tariff Average Price increase for imported vehicles – $9,100
2025 50% Tariff Price increase for U.S. built-vehicles – $6,800
2025 50% Tariff Average Price increase for imported vehicles – $18,200
The Ford Mustang Mach-E (51.7K sold in 2024) is primarily manufactured at the Cuautitlán Stamping and Assembly Plant (CSAP) in Cuautitlán Izcalli, Mexico.
Hyundai and Kia (44k & 43K) has a plant in Georgia.
The Honda Prologue (33K) is assembled at General Motors’ (GM) Ramos Arizpe plant in Mexico.
The Chevrolet Equinox EV (29k) is manufactured at General Motors’ (GM) Ramos Arizpe plant in Coahuila, Mexico.
The BMW i4 (23k) is produced at BMW’s main manufacturing facility in Munich, Germany.
The Chevrolet Blazer EV (23k) is manufactured at General Motors’ (GM) Ramos Arizpe plant in Mexico.
The Nissan Ariya is made at Nissan’s Tochigi factory in Japan.
The Toyota bZ4X is manufactured in both Japan and China.
The BMW iX is produced at the BMW Group Plant Dingolfing in Lower Bavaria, Germany.
Analysis by Bloomberg Economics shows that the new tariffs could reduce overall U.S. imports by 15 percent. While the Washington, DC-based Tax Foundation estimates that the tariffs will generate around $100 billion per year in extra federal tax revenue.
A unilateral 25 percent tariff on these goods could slash Mexico’s GDP by some 16 percent according to Bloomberg Economics, with Mexico’s auto industry bearing the brunt.
A 50% tariff would devastate the export part of Mexico and Canada.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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