This move by Trump to make cars unaffordable for many American families. Here's why

Lower-income buyers will suffer another blow from expected hikes in used car prices as demand surges and supply shrinks.

New cars priced under $30,000 are already rare as the average new-vehicle price approaches $50,000. The only way automakers can eke out profits on economy cars, analysts say, is to build them in nations with lower manufacturing costs.

A Reuters review of data from two auto research firms found just 16 models with an average sticker price less than $30,000 and only one, Toyota's Corolla, that is assembled in the United States. All others are made in Mexico, South Korea, or Japan.

Slapping a 25% tariff on these low-end cars may force price increases that make them unaffordable to their target market or cause some automakers to abandon them entirely, industry analysts said.

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«New vehicles across the board are going to be more expensive,» said Sam Fiorani, vice president of research firm AutoForecast Solutions. «That's going to push more buyers into the used market, which will also raise the price of used vehicles.»

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Burnis Carrington, of Monroe, Louisiana, is shopping for a used car instead of a new one, as he worries about tariff-driven price increases.
«Most families in need of a family car are paying prices that approach nearly half of what their home may be worth,» he said. «The underlying problem is still that nothing is being done to make the vehicles made domestically more affordable.»

Trump's political base of rural supporters could be among those bearing the brunt of the import taxes. About half of voters reporting household incomes of less than $50,000