The President and CEO of Rick Case Case affects how tariffs on the automotive industry affect Americans on the Clampan countdown.
Car experts are concerned about the president Donald Trump Tariffs can make vehicles at entry prices unbearable for buyers.
According to Jennifer Newman, the editor of Cars.com, about 90 % of affordable vehicles-what the car trade defines as prices below $ 30,000-is built outside the United States, which puts them at risk of raising prices or reducing production. Cars Commerce is a platform that includes Cars.com.
Suitable models for the current budget are lacking, and according to Newman, Trump's car industry tariffs could lead manufacturers to further production.
Ford Mach-E EV vehicles are seen in dealership in Richmond, California. (David Paul Morris / Bloomberg via / Gitti Pictures)
Currently, according to car trade data, cars below $ 30,000 make up only 14 % of new vehicles. According to data, it has declined significantly from 38 % in 2019-2021.
Trump imposed a 25 % tariff in April In all imported passenger vehicles. This includes sedans, SUVs, crossover, minibus, cargo pickups and light trucks. It also hits the main parts of the car such as motors, transmission, propulsion parts and electric components.
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Government It is also planning to impose a 25 % separate tariff on automotive parts, which starts on May 3. Initially, sections on the US-Mexico-Canada Agreement (USMCA) will be exempted, although the business office is expected to prepare a plan to impose tariffs on non-US components. The agency is also expected to create a process to impose tariffs on other automotive components by the end of June.
Automakers do not benefit as affordable as affordable cars, so if prices rise, they are likely to start retreating those models in favor of higher prices that make the larger margins.
Vehicles for sale at Ford Agent in Colema, California. (David Paul Morris / Bloomberg via / Gitti Pictures)
“What we have seen during the epidemic is that when carmakers had to choose the hard choice that their vehicles wanted to import limited equipment from their chips and parts, they went with higher -priced vehicles,” Newman said.
As automakers strive to prioritize specific vehicles, demand for these models increases. Newman said the question is that sellers will be aware that consumers have limited options and are likely to raise prices, knowing buyers will pay for the necessity.
Currently, according to Kelley Blue Book data, the average price of a new car is about $ 49,000. According to car trade data, the figure has remained for the past 18 months, but it is still about 30 % more than the first quarter of 2019. During the epidemic of Coveid-19, When supply was extremely limitedThe average price of approximately $ 54,000 peaked.
“We look at it as a complete, honest storm for our buyers,” he said.
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According to Newman, the car market also feels its impact because it is closely linked to the new car market.
Vehicles used for sale at Colema, California. (David Paul Morris / Bloomberg via / Gitti Pictures)
“I know that many buyers see them as two different things. They're not,” he said.
However, according to Newman, the supply in the car market is also limited – especially for vehicles under six years. As a result, budgetary shoppers should consider older and higher cars. This is likely to mean repeated repairs, which can be more expensive as tariffs Increasing prices And make the source harder for the source.