I understand that about 2 tons of steel goes into making the average automobile. A ton of steel costs about 700 bucks. That means 1400 in the car is the cost of steel as of last year. If you add 25% to that, it makes the cost of the steel in a car 1750 bucks.
The average car costs about 32k last year. This steel difference will increase the cost from 32,000 to 32,350.
I don’t think the average car buyer would know the difference. Besides, the average car in 2018 is 33k.
Your estimate is based on zero sum math. In reality, the foreign exporters will drop prices to remain competitive with the expanded domestic capacity. Expanded domestic capacity also tends to lower costs. Prices don’t go up one to one with tariff rates.
Agreed.
The federally mandated features which are constantly creeping into cars seem to add 1000/feature.
I think a ton of rolled steel is WAY less than $700.00