Hey gearheads! 🚗💥 US tariffs on auto parts are squeezing American carmakers, and guess who might pay the price? You do!
Even though many cars are assembled stateside, up to 60% of their parts come from abroad. Those hefty duties—like a 25% tax on imported components—are slapping an extra $2K–$3K onto each ride, says Anderson Economic Group.
GM took a $1.1B hit in Q2 (net income fell 35%), adding $4B–$5B to its yearly tab. Ford is bracing for a $3B dent in 2025 earnings, with $800M lost last quarter. Stellantis isn’t safe either, coughing up $350M.
So far, automakers have eaten the costs, but KPMG’s Lenny LaRocca expects major price bumps early next year. Cox Automotive even predicts an average increase of $5K, pushing new cars past the $50K mark. 😱
Why not move factories here? Building new plants is a multibillion-dollar gamble that takes years—plus, some suppliers still find paying tariffs cheaper than relocating.
Bottom line: Tariffs are reshaping the auto scene. If you're eyeing a new set of wheels, start budgeting now and shop smart—compare prices, hunt for deals, and be ready for sticker shock in 2025. 🚘💸
Reference(s):
Price hikes on horizon as US tariffs squeeze American automakers
cgtn.com
