The Affordable Car Is About to Go Extinct in the US

Let’s be upfront here: US cars haven’t been cheap for a long time. The average price of a new car in the US is close to $50,000, up some $5,000 from two decades ago, even adjusted for inflation. The reasons are manifold: Vehicles have gotten more complicated—and expensive—to manufacture, the Covid-19 pandemic bent global auto supply chains out of shape, and Detroit automakers put the brakes on relatively more affordable passengers cars in the past decade in favor of higher-margin (and more in-demand) trucks and SUVs. But auto tariffs applied by the Trump administration this week—and another set of parts tariffs set to kick in next month—may effectively put a stake in the American affordable car, experts say, by driving up prices by thousands of dollars. Among the biggest losers will likely be the country’s most price-sensitive buyers, for whom a higher sticker price means waiting to trade in their old car. The moves may also put pressure on used-auto markets, too, as those former new ... Read full article.