Car prices could jump $6,000 as Trump's 25% import tariff kicks in

In a nutshell: President Donald Trump recently announced an additional 25 percent tariff on imported vehicles and parts, raising concerns about its potential impact on the US automotive sector. While supporters argue that the policy will spur growth, attract investment, and create jobs domestically, critics warn that it will lead to significantly higher prices for shoppers. The new tariff on imported cars will take effect on April 2, while the import duty on car parts will go into effect on May 3. The components subject to the new policy include engines and engine parts, transmissions and powertrain components, and electrical systems. The tariff will be applied under the USMCA trade agreement, which was ratified during the first Trump administration. Under the plan, imported vehicles will be taxed only on their non-US content. For example, a car with 20 percent US-made components under USMCA will face a 25 percent tariff on the remaining 80 percent of its price. According to Commerc ... Read full article.