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Your Next New Car Could Cost An Extra $5,000

11 Jul 2018
1159 comments
15029 views
Your Next New Car Could Cost An Extra $5,000

Imagine walking into a dealership to buy a new car and discovering that your preferred vehicle suddenly costs up to $5,000 more than it did not long ago. This situation could happen if President Donald Trump succeeds in raising tariffs on imports. If he does and other countries respond to it, we’re looking at a potential 25 percent tariff which will result in increased vehicle prices regardless of automaker.

 

 

The average new vehicle sold in the US with various discounts factored in costs about $32,000. The 25 percent tariff will be passed down to the consumer resulting in a price increase of $4,000 to $5,000 per vehicle. And that estimate takes in account carmakers absorbing half the cost. Besides, if automakers absorb that same amount per vehicle they’ll have to make cuts in production and labor.

 

 

But what concerns automakers the most are reduced sales because who wants to spend up to $5,000 more on a car for no reason other than tariffs. How could this fiasco potentially be resolved? By eliminating all tariffs on vehicles between the US, Europe, and China.

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