Canadian Prime Minister Justin Trudeau said that the new 25% tariffs imposed by the Trump administration on their country are “very dumb”. (Credit: Reuters)
chairman Donald Trump’s The new tariffs on Mexico and Canada can raise car prices up to $ 12,000, get a new analysis.
Anderson Economic Group analyzed the effect 25% tariff of Trump On the products of Canada and Mexico and found that tariffs, which are tax on imports, would cause.
For a crossover utility vehicle, the tariff will increase the manufacturing cost to at least $ 4,000, while for a large SUV it will increase by about $ 9,000 with a significant amount of material from Mexico – a similar increase of $ 8,000 with pickup trucks.
Electric vehicles (EVS) will see increase in the biggest cost from tariffs, as the cost may increase above $ 12,000, found in analysis.
Trump responded to Trudeau as a trade war ramp to Tariff as a ‘very dumb’
An analysis found that President Donald Trump’s 25% tariff car prices on imports from Canada and Mexico could increase thousands of dollars per vehicle. (Anna Moneymaker / Getty Image / Getty Images)
Anderson Economic Group also considered the impact of potential additional steel and aluminum tariffs, which was found that a exclusion to the country tariffs applies to the country tariff.
Vehicles made in Europe and Asia will see an additional cost of $ 800 to $ 1,700 per vehicle without tariff exclusion.
Anti -anti -tariff Canada and Mexico can impose against American goods at 25% tariffs of Trump, higher those prices as the Trump is applied or increased to levy with retaliation by administration.
President of Mexico on Trump Tariff: ‘Anyone Wins’
Canadian Prime Minister Justin Trudeau slammed the new tariff of Trump administration on Tuesday, March 4. (Therie Monas / Getty Image / Getty Image)
Patrick Anderson, CEO of Anderson Economic Group, Told Bloomberg“The increase in that kind of cost will directly lead – and I expect almost immediately – for the decline in sales of models that have the biggest trade effects.”
North American Automatic industry The US, Canada and Mexico are highly interconnected between facilities, as the automekers have created supply chains to take advantage of the capacity created by trade agreements between the three countries.
Trump’s tariffs on China, Canada and Mexico are effective
Mexican President Claudia Shinbam has held a press conference on 4 March to announce the reaction of the US tariff at the National Palace in Mexico City. (Raquel Cunha / Reuters / Reuters)
Auto parts can be sent from America to Canada, then Mexico and back to America Manufacturing processDepending on the part and company, it can cross the US even more often.
Every time they cross the auto parts the American border, 25% tariffs can be evaluated if no exception is given, which creates a compounding effect for tariff costs. In turn, increases the prices paid by consumers for finished vehicle or more.
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A report by Cato institute It is said that for some auto parts such as engine or transmission, this part can cross the US borders with Canada and Mexico, which can exceed seven or eight times before finishing in a finished vehicle.
