
Trump’s auto tariffs will put more pick-up trucks and SUVs on American roads
Subscribe to enjoy similar stories. The manicured lawns of US President Donald Trump’s Mar-a-Lago resort were crammed earlier this month with beautiful vehicles from European luxury brands like Lamborghini, Ferrari and Bugatti. The annual Palm Event was an opportunity for the super-rich to schmooze and show off, but it was also a celebration of automotive excellence, international specialization and consumer choice.
I was reminded of it on Wednesday evening when Trump—who’s owned many European luxury cars over the years—announced a blanket 25% tariff on all new vehicle imports, as well as key components. The president cited national security grounds, but his aim is clear—to force manufacturers to re-shore production and thereby create US manufacturing jobs. Unfortunately, his tariffs will also raise vehicle prices in the US, impair competition and further limit the pool of affordable vehicles for American consumers—all while massively denting auto industry profitability.
The Biden administration had already shut out affordable Chinese electric vehicles (EVs) with a 100% tariff, thereby denying Americans access to world-beating innovation. Now, Trump is going after the rest: Almost half of the vehicles sold annually in the US are imported. Although it’s often hard to tell Trump’s policies apart from posturing, he’s long been obsessed by auto imports and I think he’s serious this time.
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