Cnn
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The prices of the car are about to pull higher.
Indeed, a price of 25% in all cars that the United States imports should take effect on April 3. And shortly after, a price of 25% on most car parts made abroad should take effect.
In the ideal world of President Donald Trump, his prices will lead car producers to move more from their production in the United States. But car experts told CNN that it was more or less a pipe dream. And even if it was possible for companies to move all production in the United States, it would cost much more to manufacture.
In addition to that, Trump has already adopted 25% of steel and aluminum prices shipped to the United States and has threatened to impose copper rates. The three metals are necessary to make cars, therefore, the prices on them will also increase the cost of manufacturing a car.
But even by putting this aside, the price of 25% on imported cars could increase prices per vehicle by a range of $ 5,000 to $ 15,000, according to the brand and the model, according to Goldman Sachs.
For decades, North America has operated practically without any borders when it comes to producing cars, due to the free trade agreements that have enabled cars and automotive parts to come to the United States in the franchise of rights. This is partly why Mexico was the main source of cars imported into the United States last year.
Even if there is a lot of automotive production that takes place in the United States, there is no 100% American car, given the number of parts shipped from abroad.
For example, at least 60% of American car sales from Volvo, Mazda, Volkswagen and Hyundai were imported, according to an analysis of S&P Global Mobility.
For the moment, imported cars in accordance with the US-Mexico-Canada (USMCA) agreement, which was negotiated by Trump during his first mandate, will be able to come to the United States as a franchise on rights until US customs and border protection have a system in place to apply prices to non-American parties, according to an information sheet published by the White House.
