Trump's tariffs could make your next car more expensive [View all]
Source: Yahoo! News/Business Insider
Fri, November 29, 2024 at 4:37 PM EST
President-elect Donald Trump's new tariff proposals could hit American and European carmakers hard — and could push prices up for your next car.
A Friday note by S&P Global estimates a 25% tariff on Canadian and Mexican imports, coupled with a 20% tariff on light vehicle imports from the EU and UK, could cost some carmakers 17% of their annual earnings — and as high as over 30% — before factoring in interest, taxes, depreciation, and amortization.
Higher tariffs could hit General Motors, Jaguar Land Rover, Stellantis, and Volvo hardest, S&P Global said. Meanwhile, BMW, Ford, Hyundai, and Mercedes-Benz may be less impacted. "Donald Trump's re-election will likely intensify the headwinds the global auto industry will face in an already challenging 2025," the authors wrote.
These tariffs could push car prices higher and lead Americans to dig deeper into their wallets for another vehicle. Wells Fargo estimated Wednesday that tariffs could raise the price of cars made in the US by an average of $2,100. For vehicles fully produced in Canada or Mexico, prices in the US may increase between $8,000 and $10,000 higher, Wells Fargo estimated.
Read more: https://www.yahoo.com/news/trumps-tariffs-could-next-car-213742217.html
Link to S&P Global STATEMENT - Auto industry Buckles Up For Trump's Proposed Tariffs On Car Imports
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