President Trump’s proposed tariffs threaten to raise the cost of a new imported vehicle by thousands of dollars. Since even American-made cars include parts imported from foreign suppliers, these tariffs will wreak havoc on the North American and global vehicle supply chains, with America’s closest allies bearing the brunt of this action.
On 25 May, the Trump administration launched a Section 232 investigation to determine whether imports of vehicles and car parts are a threat to US national security. The president is proposing a tariff of 25% on those imports in the future and whilst this is a significant hike from the current 2.5% tariff on imports, it is similar to the existing 25% import tariff that the US has levied on pick-up trucks since 1964.
US vehicle tariffs are a Demolition Derby with no winners
The US relies heavily on imports to meet vehicle demand and imports far exceed exports.
Download CRU’s report here CRU report 20180816