The president of the United States, Donald Trump, and his allies have offered a solution to avoid price increases due to the rates of his car: buy American.
Trump told NBC News on March 29 that it is “could not matter less” if foreign cars manufacturers increased prices in response to tariffs. “I hope they increase their prices because they do it, people will buy cars made in the United States,” Trump said. “We have a lot.”
The rate of 25 percent of the administration on the effect of tok of cars imported on April 3, and an additional rate on import pieces will enter into force on May 3.
Tariffs are a tax on imported goods paid by companies. Their costs are often transmitted to consumers through high prices.
The Fox News presenter, Jesse Watters, made a statement similar to Trump on April 3: “If worried, the cars will cost more, buy American.” Watters cited a clip or the promotion of Ford Motor CO to temporarily give customs its employee rate in cars.
Bernie Moreno, a Republican Senator from Ohio who had multiple car dealers before taking office, Trump echoed in the CNN interview on April 2.
Moreno said that “the only ones who are mostly injured are the cars that are manufactured abroad, exclusive and sent to the United States. Ultra luxurious cars.”
However, this is contradicted by a Cox Automotive analysis, a research firm, which found that “25 percent of the imported vehicles will be applied to almost 80 percent of vehicles with a price of less than $ 30000”. The analysis cited models such as Honda Civic, Toyota Corolla, Chevy Trax and Trailblazer, Nissan Sentra and Honda HR-V.
Senator Moreno added that among the “conventional cars-a Honda, a Toyota, a sub-sub
Many automobile experts said that it is not so simple to avoid price increases when buying US cars, since they gathered in the US. UU. They also use imported parts.
“The concept of a car made by the United States with all the part of the United States is a fictitious story,” said Daniel Iives, a senior variable rental of Wedbush Securities. “They will rate those parts.”
Automotive companies depend on imported parts to varying degrees. For example, the Tesla Model and has 70 percent of the value of its pieces made in the United States or Canada. For Ford F-150, it is 45 percent.
The Trump administration has said that by increasing income through tariffs, other federal taxes could be reduced. But economists have said that it is unlikely that high rates can generate enough income to result in significant tax reductions for typical Americans.
In response to an email from Politifact asking about Moreno’s statement about the US: the senator cars attacked the publication and provided Noerweers with his questions about cars and tariffs. The White House, when contacted, said some cars are exempt from tariffs.
Many American car manufacturers use imported parts
Moreno said that American assembly cars that obtain pieces from Mexico and Canada will be “completely free of tariffs” if they fulfill the American-Mexico-Canada agreement that the Trump administration negotiated in 2018.
But many pieces of cars used in the United States come from the country other than Mexico and Canada.
Jason Miller, professor of supply chain management at Michigan State University, examined automotive tariff data and told Politifact that he showed Mexico “clearly the list” for car parts imported to the United States. China is second (due to lithium -ion batteries), Japan is fourth, South Korea is fifth and Germany is sixth.
Miller said that the other Trump tariffs on steel and aluminum mean that even if a car meets 100 percent of only national components, costs would still increase because steel and aluminum prices are increasing in the United States.
“They simply do not simplify things excessively, there are lies directly,” Miller said about people that cars buyers can buy all the United States, also, not all car parts in Mexico comply with the US-Mexico-Canada agreement, so they are also being rates, he said.
Amy R Broglin-Peterson, an expert from Michigan State University in supply chain management, said: “All vehicles use at least a percentage of foreign parts.
The Wall Street Journal reported on April 4 that, at first glance, Ford is better positioned for meteorological tariffs because 80 percent of its cars, trucks and SUVs sold in the US. UU. Manufactured in the country, and there are also many of the parts.
Many components of Ford F-150s, such as alternators and wheels, come from other countries and, as of May, those parties could face a new 25 percent tax. The Wall Street Journal wrote: “So even thought that Ford trucks are built in the American Heartland, import tariffs could increase the average price for thousands of dollars.”
The National Highway Traffic Security Administration (NHTSA) publishes data on the US and Canadian content for the parts used to assemble motor vehicles in the US countries. UU. And foreigners. The data show that some Toyota cars lines built in the USA., Such as Corolla, include 25 percent value for the value of imported parts of Japan.
A Toyota spokesman said that 47 percent of the vehicles that the company sold in the United States in 2024 was built in the United States.
USA Today analyzed NHTSA data for multiple car manufacturers and discovered that “for all models gathered and available for sale in the US, 47 percent of the parts (by value) originated in the US.
A COX automotive spokesman said that the average vehicle made in the United States has approximately 50 percent of its pieces or components by imported value.
Automobile prices could increase because either Trump’s rates
The long -term effect of tariffs on the automotive industry is difficult to predict. Cox Automotive predicted strong sales until the inventory prior to the rate decreases.
“But all roads lead to this fact: in the coming months and years, as the new rates are established in place, vehicles are expected to increase the prices of the US in the US.”
Cox predicted that vehicles affected by these rates could see that prices increase by 10 percent to 15 percent, and at least 5 percent increase for vehicles that are not subject to the full rate.
“Interruptions and decrease in production could be a reality this summer, especially as automobile and suppliers manufacturers work to align practices with new rules,” Cox wrote.
As the price of cars manufactured in foreign countries increases, producers of competing American models with fewer imported parts will increase their prices, not in dollars per dollar, but perhaps 40 cents per dollar, Gary Hufbauer, a non -economic, predict.
“American automobile manufacturers are suffering and the prices where they can,” said Hufbauer.
Louis Jacobson contributed to this article.