Canadian Prime Minister Justin Trudeau said new 25% prices imposed by the Trump administration on his country were “very stupid”. (Credit: Reuters)
President Donald Trump New prices on Mexico and Canada could increase car prices up to $ 12,000, according to a new analysis.
Anderson’s economic group has analyzed the impact of 25% Trump prices On Canada and Mexico products and have found that prices, which are import taxes, would cause.
For a public crossing service vehicle, manufacturing costs would increase by at least $ 4,000 due to prices, while for a large SUV with a large amount of Mexico content, it would increase by $ 9,000 – with vans with a similar increase of $ 8,000.
Electric vehicles (EV) would see the most important cost increases in prices, as costs may increase more than $ 12,000, depending on the analysis.
Trump responds to Trudeau calling “very stupid” prices while the trade war increases
The 25% tariffs of President Donald Trump on imports from Canada and Mexico could increase prices of cars of thousands of dollars per vehicle, an analysis revealed. (Anna Moneymaker / Getty Images / Getty Images)
Anderson’s economic group has also examined the impact of additional steel and aluminum tariffs, which, she said, would add $ 250 to $ 800 for gas vehicles manufactured in North America and up to $ 2,500 for electric vehicles, assuming that an exclusion applies to country prices.
Vehicles manufactured in Europe and Asia would see an additional $ 800 at $ 1,700 in cost per vehicle without price exclusion.
Reprisals That Canada and Mexico can impose against American goods on prices of 25% of Trump could increase these prices as the samples are imposed or increased, stimulating reprisals by the Trump administration.
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Prime Minister of Canada Justin Trudeau criticized the new Trump administration’s prices on Tuesday, March 4. (Thierry Monasse / Getty Images / Getty Images)
Patrick Anderson, CEO of Anderson Economic Group, Tell Bloomberg“” This type of cost increase will lead directly – and I expect almost immediately – a drop in sales of models that have the biggest commercial impacts. “”
North America automotive industry is strongly interconnected between facilities in the United States, Canada and Mexico, as car manufacturers have built supply chains to take advantage of the efficiency created by trade agreements between the three countries.
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Mexican President Claudia Sheinbaum holds a press conference to announce a response to American prices at the National Palace in Mexico City on March 4. (Raquel Cunha / Reuters / Reuters)
Automobile parts can be shipped from the United States to Canada, then to Mexico and the United States during the manufacturing process. Depending on the play and the company, it could cross the United States even more frequently.
Whenever these automotive parts cross the American border, the 25% rate can be evaluated in the event of an exception granted, which creates a composition effect for tariff costs. This, in turn, leads to the prices paid by consumers for the finished vehicle or the higher part.
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A report of Cato Institute Note that for certain automotive parts such as an engine or a transmission, this part could cross the American borders with Canada and Mexico more than seven or eight times before being in a finished vehicle.
