Bloomberg Businessweek Car Prices Are Poised for $12,000 Surge on Trump’s New Tariffs
Mar 3, 2025
In this discussion, stacy-marie ishmael, Bloomberg's Crypto Managing Editor, shares insights on market skepticism regarding Trump's plan to include lesser-known digital tokens in a U.S. reserve. Alexis Browne Roberts, COO at Alexis Investment Partners, weighs in on emerging market trends amid the new tariffs expected to raise U.S. car prices by as much as $12,000. Together, they explore the ripple effects of these economic shifts on consumers and investors, emphasizing the importance of adaptability in a volatile market.
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Impact of Tariffs on Car Prices
- New tariffs on Canada and Mexico could increase US car prices significantly, by up to $12,000 per vehicle, according to Anderson Economic Group.
- This price hike could impact auto sales and disrupt the established North American automotive supply chain.
Impact of Tariffs Based on Car Origin
- Cars made in North America with higher percentages of Mexican or Canadian components would be most affected by the tariffs.
- This includes parts like engines and transmissions, impacting automakers like Ford, which builds engines in Canada for its US trucks.
GM's Silverado Production
- General Motors builds its Chevy Silverado in the US, Canada, and Mexico, highlighting the integrated nature of the North American auto industry.
- The new tariffs create difficulties, as automakers attempt to centralize production in the US to avoid tariffs, impacting the supply chain.