Car prices are expected to rise by $ 12,000 thanks to the Trump tariff

Car prices in standard highlands, and President Donald Trump’s tariff – If they take place in their place – they can send them to the strategy. The situation is still very fluid, as Trump administration officials announced today a single month for the auto industry, according to Politico.

But if the definitions remain in place, the rates of stickers may rise by up to $ 12,000, according to one analysis. The agents can be stuck with a group of trucks and four -wheel drive vehicles that no one can bear. Some models can fade out of the galleries completely. Many of these changes will not enter into effect immediately, as agents work through their car’s stock. But the clear effect is still devastating.

After a preliminary delay, Trump imposed a 25 percent tariff this week on imports from Canada and Mexico as well as an additional tariff of 10 percent on goods from China. About 5.3 million cars were built in Canada and Mexico70 percent of them are allocated to the United States.

Auto -making companies have warned of the catastrophic effects on the industry if the Trump tariff remains in place. Ford CEO Jim Farley clearly put the matter in A conference for the investor last month: “Let’s be true honest,” Farli said, “In the long run, a 25 percent tariff will be made through Mexico and the Canadian borders to blow a hole in the United States industry that we have not seen before.”

This can include a historical decrease in the production of vehicles in the United States, Canada and Mexico – perhaps as much as a third of the car in all three countries. The current production of North America is about 63,900 cars per day: 41,700 in the United States; 17600 in Mexico; And 4600 in Canada. S & P Global Mobility said during an online symposium this week that production on some models, such as the famous Toyota Rav4, which was made in Canada, could stop completely. Toyota is unlikely to find space in American assembly factories to replace this production.

Vehicle prices already reach their highest historical levels, as medium transactions for new cars recorded $ 48,118 in January, according to Edmunds.

The threat of definitions really did not move the needle last month, but still has the ability to influence the cost of new vehicles that have become valid. With this customs tariff-in addition to a 25 percent tariff proposed in the European Union and an increase of 20 percent in Chinese vehicles-the average list price for new vehicles in the United States can increase by more than 7 percent, from 49,800 dollars to $ 52500, According to Carburus.

All models can witness sales, including Toyota Tacoma, Chevrolet Equinox, Toyota Rav4, Chevrolet Silvedo 1500 and Honda HR-V, an increase in major prices. But the effects will not be felt for at least several months thanks to healthy stock levels, an increase of 12 percent on an annual basis.

Other analysts took off through the costs of components for specific vehicle models made by the United States to see how customs tariffs can affect locally assembled vehicles. Anderson Economic Group has concluded that the customs tariff can enhance manufacturing costs of $ 4,000 to more than $ 10,000 per car, depending on the car model. SUVs for electric batteries can witness the largest height of $ 12,000, according to the deep diving of the group.

Car manufacturers had months to prepare for definitions, but given the complex nature of supply chains, it is unclear that none of them would be able to avoid increasing cost to consumers. The Investment Bank expected that the prices will increase by about 6 percent on average, or 2700 dollars, while two analyzes Kelly Bluk was martyred Average average price of $ 3000.

Car dealers, many of whom are supporters of Trump, are left, calculating the repercussions of the president’s trade war. In a recent interview with FoxThe Philadelphia -based Rams trader called “shock” definitions. The customer’s experience, who requested a truck worth $ 80,000, narrated only to give up the purchase after the price increased by $ 20,000.

“He will sit on a lot, and you know that the high interest rates we are now paying for Floorplan, and no one will buy the truck because it was more than $ 20,000 in prices,” David Keeler, a Ramer dealer, told RAM Keeler.