{"id":17001,"date":"2025-04-03T04:08:41","date_gmt":"2025-04-03T04:08:41","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/auto-tariffs-take-effect-putting-pressure-on-new-car-prices\/"},"modified":"2025-04-03T04:08:41","modified_gmt":"2025-04-03T04:08:41","slug":"auto-tariffs-take-effect-putting-pressure-on-new-car-prices","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/auto-tariffs-take-effect-putting-pressure-on-new-car-prices\/","title":{"rendered":"Auto Tariffs Take Effect, Putting Pressure on New Car Prices"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Tariffs on imported vehicles took effect Wednesday, a policy that President Trump said would spur investments and jobs in the United States but that analysts say will raise new car prices by thousands of dollars.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The 25 percent duty applies to all cars assembled outside the United States. Starting May 3, the tariff will also apply to imported auto parts, which will add to the cost of cars assembled domestically as well as auto repairs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">There will be a partial exemption for cars made in Mexico or Canada that meet the terms of free trade agreements with those countries. Carmakers will not have to pay duties on parts like engines, transmissions or batteries that were made in the United States and later installed in cars in Mexican or Canadian factories.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">That provision will reduce the impact on vehicles like the Chevrolet Equinox electric vehicle, which is assembled in Mexico but includes a battery pack and other components made in the United States. General Motors will pay a tariff only on the portion of the car made abroad.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">At the same time, the duty on parts will raise the cost of cars made in Michigan, Tennessee, Ohio or other states. That is because most cars rolling out of U.S. factories contain components made abroad, often amounting to more than half the cost of the vehicle.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">About 90 percent of the value of some Mercedes-Benz cars made in Alabama, for example, is in engines and transmissions that are imported from Europe, according to data compiled by the National Highway Traffic Safety Administration.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The impact of the tariffs on individual vehicles will vary widely. Cars like the Tesla Model Y, made in Texas and California, or Honda Passport, made in Alabama, have high percentages of U.S.-made parts and will pay lower tariffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Tariffs will be highest on cars manufactured abroad, like the Toyota Prius made in Japan or Porsche sports cars made in Germany.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Even people who don\u2019t buy new cars will be hit by the tariffs because they will pay more for parts like tires, brake pads and oil filters.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Michael Holmes, co-chief executive of Virginia Tire and Auto, a chain of auto repair and maintenance shops, said he and his suppliers would initially try to absorb most of the increased cost.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThat\u2019s not sustainable,\u201d Mr. Holmes said. \u201cIt\u2019s magical thinking to think businesses won\u2019t pass this on.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The auto tariffs could also push up prices for used cars over time, analysts said, by increasing demand for those vehicles as new ones become unaffordable for many buyers. Insurance premiums may also rise because repairs will cost more.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/business\/trump-auto-tariffs-car-prices.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tariffs on imported vehicles took effect Wednesday, a policy that President Trump said would spur investments and jobs in the<\/p>\n","protected":false},"author":1,"featured_media":17002,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[332,754,239,114,329,335,135,877,763,338,760,413,134,334,113,168,111],"class_list":["post-17001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-automobiles","tag-canada","tag-customs-tariff","tag-donald-j","tag-electric-and-hybrid-vehicles","tag-factories-and-manufacturing","tag-fees-and-rates","tag-general-motors","tag-germany","tag-international-trade-and-world-market","tag-japan","tag-mexico","tag-prices-fares","tag-tesla-motors-inc","tag-trump","tag-united-states","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Auto Tariffs Take Effect, Putting Pressure on New Car Prices - World 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