Taxes for the U.S. Consumer, with a Heavy Importance,: Donald Trump in his 2016 inauguration speech on Truth Social
Most of the tariffs would be paid by the consumer, according to S&P Global Mobility.
“This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump said in a post on Truth Social. “We need to protect Americans, and it is my duty as President to ensure the safety of all.”
Tariffs were one of Trump’s major campaign promises, and he’s floated additional ones, like a tax on semiconductors from Taiwan. He made threats against the two countries. The president said in his inauguration speech that he will immediately begin to reform the US trade system. Instead of taxation our citizens to other countries, we will tax foreign countries that enrich our citizens.
Are Automakers Brace for the Massive Impact of Trump’s Trump Canada-Mexico-Price-Ev?
“As that price goes up, consumers exit,” Wall said. They are going to hold off and wait. They may go to the used market. I’ll tell you what, if pricing on the new market goes up, guess what? Pricing on the used market is going to be impacted by supply and demand.
Listen to the companies that will be responsible for those costs. “If we get tariffs, we will pass those tariff costs back to the consumer,” said Philip Daniele, CEO of AutoZone, on an earnings call in September, according to CNN.
The Volkswagen factory in Mexico makes nearly 350,000 cars over the next two years, many of them for export to the United States. In a statement the company said it’s still a strong advocate for free and fair trade.
“We are monitoring the situation and planning for various scenarios,” the German auto giant added. We want a quick resolution to the tariffs across North America.
Most of the car companies will be affected by this, whether it’s Ford’s F-series trucks and Mustang with engines made in Canada or the Mazda CX-50s from Mexico.
Most economists believe that a wide variety of consumer goods, from clothes to shoes, will go up in price. Trump claims foreign companies will eat the higher costs, but don’t be fooled.
Mike Wall is an executive director for automotive analysis at S&P Global Mobility. As dealers get more wary about their vehicle inventories, you will likely see less incentives and special deals. Perhaps fewer vehicles even get made as manufacturers weigh the costs of paying 25 percent duties on key parts and components. Eventually, the higher cost of building and selling a car in the US will filter down to the consumer.
Source: Automakers brace for ‘massive’ impact of Trump’s tariffs
Correspondence to P.J. Lazaro and E.V. Schur in e+ e- – a radio news editor
He is an editor with over 10 years of experience covering aviation, EV, and public transportation. His work has appeared in The New York Daily News and City & State.
