Trump Administration Tariffs Could Boost Car Prices, Limit Choices

Car and Driver ^ | 06/22/2018 | BY DAVID MULLER

[SeekAndFind]

The Trump administration’s recently announced 25 percent tariff on myriad China-made goods—including vehicles—would add a levy of approximately $8250 to the price of a Buick Envision crossover. That’s 25 percent of the 2019 model’s $32,990 starting price. Whether that increase is reflected in full on the sticker price come July 6, when the tariffs are set to take effect, is totally up to General Motors. The automaker would not provide detail on any potential financial impact of the tariff; a spokesperson said the company is assessing the situation.

The Chinese tariffs could still be adjusted before July 6. But as it stands, the United States Trade Representative (USTR) is set to put the 25 percent duty on $50 billion worth of goods made in China, affecting industries ranging from aerospace to industrial materials but excluding more commonly bought consumer goods such as televisions and cellular phones. President Donald Trump has also threatened to pursue another $200 billion in tariffs on Chinese goods.

While China-sourced vehicles of all kinds are affected by the $50 billion in levies announced Friday, there remain few passenger vehicles sent from that market to the United States. The Envision is a primary example, but it isn’t one of GM’s higher-volume vehicles. The automaker delivered 41,040 Envisions in the U.S. last year, compared with 290,458 units of the mechanically similar Chevrolet Equinox and 123,506 units of the larger Chevrolet Traverse. GM is building the Envision in China primarily for sale in China; it sold 210,000 Envisions there last year. (Such a tariff would hit China-built models such as the slow-selling Cadillac CT6 plug-in hybrid and the long-wheelbase Volvo S60 Inscription—which start at $76,090 and $37,945—even harder.)

Ford plans to build its next-generation Focus in China, and so far plans call for the eventual import

[DannyTN]

"Trump Administration Tariffs Could Boost Car Prices, Limit Choices will help American auto manufacturers and auto parts industries, employee Americans with good paying jobs"

Fixed it!

[SeekAndFind]

Good fix. How much will this cost car buyers?

[Pinkbell]

No, we can’t have it written that way. It wouldn’t outrage the resistance movement.

[robroys woman]

I suppose it depends on where the care at produced and where the parts come from. Camry’s come from Kentucky.

[DannyTN]

"Good fix. How much will this cost car buyers? save in unemployment, disability, other government support costs for unemployed Americans, generate in income tax, generate in economic activity due to multiplier effects, raise the real wages in America, reduce the deficit, lower taxes?"

Fixed it

[DannyTN]

The resistance movement has to be hysterically exhausted after the last two weeks.

[Dixie Yooper]

At a time when we “can” afford it, he does it. For the first time in my life, we’re actually negotiating trade from a good position, and with our negotiators knowing and using the fact.

[odawg]

The car manufacturers have already beaten Trump to limiting choices.

[READINABLUESTATE]

Germany is pleading with the EU to get the tariffs dropped on American automobiles.

[precisionshootist]

Fine and if the President cut the communist EPA fuel regulations and other mandates out it would drop the price of our cars to lower than they are today. Block China’s trade advantage and get the Federal Government out of our auto industry. Cars will be cheaper, better than ever and Americans will be employed building them.

[Parmy]

Look what Obama did to the auto industry in 2009. The loss of jobs, bankrupt companies and loss of companies was horrendous.

[BitWielder1]

The purpose of the tariffs is to encourage the Germans to lower or eliminate their tariffs against American cars.
Then we eliminate ours and cars will get cheaper on both sides of the Atlantic.
Journalists must be horrible chess players if they can't even plan 2 steps ahead.

[Grampa Dave]

"Trump Administration Tariffs Could Boost Car Prices, Limit Choices will help American auto manufacturers and auto parts industries, employ Americans with good paying jobs"

Fixed it!

[aMorePerfectUnion]

Oh, the terrible first world problems we are facing!!

[Truthoverpower]

Snore
Whiners whining
Sky is falling
China cheats like breathing air
Their markets could not be more closed

[nikos1121]

This guy is an idiot. How is going to boost car prices? Maybe on cars imported here, but the American consumer can decide what they wish to buy. Prices of cars here, might even go down.

[davidb56]

I would gladly pay a grand more for a American built car if it had American made parts in it, instead of the Chinese $hit that fails under 30K miles...such as brake rotors and U joints, CV axles, struts, and electrical components. Quite a few are made in China to “so called” OEM specs.

[Architect of Avalon]

The country finally has a President who fights for American interests and thus for the prosperity of the American people.

What’s up with that?

Didn’t he get the memo that the standard approach to trade is to surrender and sell out Americans in order to cater to globalism?

[pgkdan]

Boo freakin’hoo!