Why Trump’s auto tariffs will hurt his working-class supporters

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Detroit: Working class car buyers will be most affected by the 25 % tariff on imported vehicles of US President Donald Trump as almost all low -cost new cars sold in the United States have been built elsewhere.

Low -income buyers will do another shock with the expected rise in used car prices as demand will increase and supply will shrink.

On average new, new cars coming less than 000 30,000 are already rare because the average price of new vehicles, 000 is close to 50,000. Analysts say that automated makers can make profit on the economy cars, they have to build in low manufacturing costs.

Writers reviewing the data of two auto research firms found only 16 models with an average sticker price, less than 000 30,000 and only one, Toyota’s Corolla, which is deposited in the United States. The rest are built in Mexico, South Korea or Japan.

Industry analysts said that slapping 25 % tariffs on these low -car cars could be forced to raise prices, which causes them to become unbearable in their target market or cause some car makers to abandon them completely.

“New vehicles are going to be more expensive on the board,” said Sam Furrani, vice president of the research firm autoforecasts. “It’s more buyers pushing into the used market, which will also increase the cost of used vehicles.”

Louisiana’s Monroe’s Bernies Kernington is purchasing used car instead of a new car, as he worries about raising tariff prices.

“Family car needs are mostly paying family prices that are close to half of their home price,” he said. “The basic problem is that nothing is being done to make vehicles more cheap.”

Trump’s rural supporters can be one of those who have imported taxes. According to the Edison Research Exit Survey, almost HALF half of the voters supported domestic income, less than 50,000 annual Trump elections, as well as 56 % of the college degrees, with 56 % of voters, without college degrees.

Trump told NBC News on Saturday that if carmaker prices rise, they “can’t care less”, because if prices on foreign cars go up, they are going to buy US cars. “

Many of these foreign cars have been created by US carmakers, including three U -$ 30,000 vehicles of GM: Book Envita and Chevrolet Tracks and Trail Bills. The three are built in South Korea. GM also makes millions of hot -selling trucks in Mexico.

Trump says revenue in the US auto industry will accelerate. Some experts say that high import taxes will have the opposite effect.

Arthur Lafar, a economist at the Conservative Supply Side, wrote in a March report, “Since high prices reduce the endurance of vehicles, families can start giving priority to other sectors of their budget, reduce discretionary costs or delay big purchases.”

‘Business case’ burst for cheap cars

Detective Automackers General Motors, Ford and Steles, Jeep and Ram truck makers, have shut down most entrance -level models to focus on highly profitable trucks and SUVs in recent years. It has almost left the economy’s car market for Asian carmakers.

“I’m never really watching them back there,” said Carl Brauer, an executive analyst at ISEECR.com.

Ford builds its minimum expensive vehicles, compact miracious trucks and medium -sized bronco sports in Mexico. Based on the average sticker prices of models sold in January and February, Cox Automoto data, they both sell for an average of more than $ 30,000. The cheapest model of the jeep is the same for compass, which it makes in Mexico.

According to the autophorest solution, made by Nissan, Mazda, Hundi, Kia, Kia, Toyota, Sabo and Vox Wagon, 000 30,000 models are all made in Mexico or South Korea.

Honda makes its most soldier citizen in Canada and the United States. Its compact is built in the HR-V crossover in Mexico. According to Cox Automoto, the average sticker prices of both models were more than 30,000.

The margins on these vehicles are low, and their buyers are sensitive to price. Braver said that means that selling high taxes can make it impossible to sell them.

He said that 25 % tariffs would “completely blow up the business issue” for admission -level vehicles.

Cox Automoto estimates that 25 % tariffs will increase the cost of a car from the United States, 000 3,000 and in Canada or Mexico vehicles, 000 6,000.

Ford said he is still examining the potential impact of revenue on low -cost vehicles prices. Other car makers presented in this story did not comment.

Rising car prices

Some industry experts compared the potential impact of more tariffs than the shortage of supply chain, which increased the new prices of vehicles during pandemic disease.

Since then used car prices have dropped. The average used vehicle listing cost was 25,006, which was 1.0 % less than a year ago.

According to Cox, but the supply of more affordable cars is relatively tight. Dealers have about 30 days of used cars, less than 15,000, or 12 days less than the overall used car supply.

“The vehicles used in the range of 000 25,000, 000, will be the most demand,” Furrani said, “said Furrani, because the car maker will abandon this production.

44 -year -old Phoenix resident Eric Fanestmistor started shopping more immediately when Trump started threatening revenue. The IT worker purchased 2022 Honda Accord in mid -March after struggling to find a new vehicle, which he liked for less than $ 30,000.

“I feel very relieved,” said Finister maker. “I’m glad when I did it. Otherwise, this price increases.”