Mon Mar 31 17:00:35 UTC 2025: ## Trump’s Auto Tariffs to Hike Prices, Kill Jobs, Experts Warn
**Washington, D.C.** – President Trump’s newly announced 25% tariffs on imported cars, light trucks, and auto parts are expected to severely impact the US auto industry, causing significant price increases and job losses, according to experts. The tariffs, slated to take effect this Thursday, affect nearly half of the vehicles sold in the US annually, representing over $330 billion in imports.
While the President claims the tariffs will encourage domestic production, economists like Ilhan Geckil of the Anderson Economic Group (AEG) contend this is a protectionist measure, a stark departure from decades of free market policies. Although some manufacturers, such as Hyundai and Kia, are planning to increase US production, Geckil argues this is primarily to maintain access to the lucrative US market. He predicts the tariffs will lead to substantially higher vehicle prices – potentially increasing the cost of a $50,000 vehicle to $75,000-$80,000 within a few years – ultimately dampening demand and resulting in job losses.
AEG estimates suggest that the tariffs, combined with previous levies on steel and aluminum, could increase the price of a US-assembled vehicle by $4,000-$10,000, with even higher increases for electric vehicles. The impact could be even greater due to potential retaliatory tariffs from other countries. Ford CEO Jim Farley has already warned of “significant impacts” across the industry.
The deeply integrated nature of the North American auto industry further exacerbates the problem. David Adams of Global Automakers of Canada points out the intricate web of parts crossing borders multiple times during vehicle production. Tariffs on Canadian vehicles effectively tax US suppliers, and retaliatory measures from Canada and Mexico are almost certain, leading to a price spiral. Adams estimates that relocating Canadian auto production to the US would cost $50 billion to $60 billion.
The situation is complicated by the lack of transparency surrounding the tariffs, and the potential inclusion of retaliatory tariffs and further tariffs based on unsubstantiated claims of fentanyl trafficking from Canada and Mexico. Brett House, a Columbia University economics professor, calls the White House’s data supporting these claims “absolutely false.”
Experts overwhelmingly agree that the long-term consequences of Trump’s auto tariffs will be negative for consumers, workers, and the overall economy. The move represents a significant shift away from free trade principles and throws the future of the North American auto industry into considerable uncertainty.
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