There’s been a lot of talks about US President Donald Trump introducing the auto tariffs that could spark a global trade war. On ‘Liberation Day’ Trump confirmed that there will be a blanket 25% tariff on all foreign-made cars, but, the reality is the additional cost will be passed on to the U.S. consumers. Hyundai is one of the first car manufacturers in the U.S. to send a brief to its dealers stating that the pricing adjustments will be reviewed due to the auto tariffs. Hyundai and Genesis Motor North America CEO Randy Parker explained to the dealers, “Tariffs are not easy’. We take a closer look at the expected price hike on automobiles.
Car price to skyrocket
Many may wonder why Trump is trying to reinvent the wheel when the three countries — Canada, Mexico and the U.S. already work seamlessly together, each playing a crucial role in the automotive industry. Well, the US President wants to bring back the all-American manufacturing heydays and make the country a global hub. After announcing the tariffs and sending tremors across the world, Trump said, “For years, hard working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. With today’s action, we are finally going to be able to make America great again – greater than ever before.”
Even though Trump aims to make America a “Global Superpower in Manufacturing,” the rise in the price will have to be something buyers will have to bear. According to a report by Fox Automotive reported by USA Today, the 25% tariffs will shoot up the prices of the vehicles that are manufactured in Canada and Mexico. The reality is that ‘Made-in-U.S’ vehicles use a lot of components from Canada and Mexico, which come under the new tariff rule.
