Will cars priced below $30,000 disappear? Trump's tariff plan to hit affordable vehicles the hardest
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Why Trump's tariff plan will hit affordable cars the hardest? This is because today, nearly one third of all vehicles priced below $300,000 and sold in US are built in Mexico. These include big names such as Nissan Sentra, Ford Maverick and other popular nameplates, according to an analysis by car-shopping website Edmunds, according to Wall Street Journal report. The firm's data shows ten years ago, Mexico was responsible for one-fifth of the affordable cars sold in the US.
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Trump has threatened tariff
A proposed 25% tariff on automobiles imported into the U.S. from Mexico could take these vehicles over this pricing level quickly. «The border country has long been a go-to for automakers looking to defray the hefty expense of manufacturing a car, particularly on smaller models that sell for lower price points and have slimmer profit margins than larger trucks and SUVs,» noted the report.
Donald Trump has said he would sign an executive order imposing a 25% tariff on all goods coming from Mexico and Canada, after being inaugurated on 20 January 2025. This move could mean undoing the free-trade agreement he negotiated in his first term, the report
