Donald Trump took the greatest political risk for the US economy by announcing sweeping duties. A risk that no other president had taken on modern history that would have an impact.

Duties have been in place and those who will they hurt more their Americans and they will shake the automotive industry is the taxes on the imported cars.

As CNN says in its analysis, America’s economy has evolved. Today is one service economy and not an economy based on construction. The USA make much less cars Today, which are still a key pillar of the economy, promoting growth and millions of jobs.

Cars are vital to the daily life of Americans: they go to work, shop, travel for vacations. Prices are already close to record levelswith a new car costing almost $ 50,000 on average. And in the coming weeks or months prices will go up more, making car market much more difficult.

Trump government has imposed 25% duties in all cars imported into America by other countries. These imports represent almost the half of 16 million new cars purchased in the US in 2024, according to S&P Global Mobility.

The Mexico is the greater source of these imports by sending 2.5 million cars in US delegations. THE Canada sends another 1.1 million, while an additional 3.7 million come from countries outside North America, including South Korea, her Japan and her Germany.

As CNN points out, now an imported car value 40,000 dollars will be burdened with Tax of 10,000 dollars. And this is a cost of supplying a chain.

“There must be a healthy debate on how this cost can be shared between suppliers, (automakers), traders and end consumers.”told the CNN automobile executive last week, noting that a large percentage would burden him consumer.

And duties come to spare parts

The Trump government is also expected to impose duties and to Imports of spare parts car at the latest until May 3rd. And when it comes into force, it means that it will cost more car production even in US factories. This is because each domestic vehicle contains imported spare parts.

For decades, since the North American Free Trade Agreement in the early 1990s entered into force, the automakers operated like the US, Mexico and Canada to be a single country.

Companies move spare parts beyond the border, several times during the assembly process of a vehicle.

Today, each of the 10.2 million cars manufactured in US factories have a large proportion of spare parts from Mexico and Canada, about 25-60%.

Bank of America’s analysis reports that car spare duties will increase the cost of US car by About $ 4,000. Another analysis of Anderson Economic Group raises the cost to more than $ 12,000 for some vehicles.

“Let’s be truly honest: Long -term, 25% duties on Mexico and Canada border would open a hole in the American industrysuch that we haven’t seen before » said the chief executive her Ford; Jim Farleyto investors in February.

What do duties mean for those who want to buy a car

Cars make up the second largest market for most householdsafter the housing. Last year, US consumers bought about 13 million new cars and 40 million used. This means that almost 40% of US households bought a car in 2024.

And these millions of Americans will soon face higher prices. Not only because of the increased cost of manufacturing a car, but also because of the basic economic theory of supply and demand.

Almost every car market is done through negotiations between the car trader and the buyer, which are largely influenced by the availability of each car. OR smaller offer translated into higher prices And this means that there may be millions of fewer new cars available for sale.

This also means that will affect the prices of used cars As many buyers will prefer the second hand to a new, more expensive vehicle, increasing demand.

Last week, according to CNN, the Americans rushed to buy cars before the duties were implemented, with automakers jumping in sales in March, mainly on imported models.

Cars

Also at risk of jobs in the automotive industry

In addition to the highest prices, due to duties it is estimated that there will be Significant loss in jobs and jobs.

About 1 million people are working in US factories who either assemble cars or produce cars, according to the Ministry of Labor.

The Trump government says that the target of duties is to Creating additional jobs In the car sector, forcing automakers to transport their production to America. But there is a high probability of exist job losses long before new factories are manufactured or re -operated.

This is due to the way the North American market operates.

If the Mexican and Canadian assembly factories shut down because of the loss to US marketthis will affect American suppliers who send accessories to these factories.

US automakers and spare manufacturers exported 35.8 billion to spare parts In Mexico and 28.4 billion in spare parts in Canada, according to the Ministry of Commerce. Thus, these exporters could be forced to cut production – and jobs in the US.

Additional, about 1 million cars American manufacture, or 10% of American production, are intended for the Canada and Mexico. Trust retaliation in US cars would raise prices for car buyers north and south of the border. This poses risks to American production, resulting in reduced working hours and layoffs in US factories.

And factories are only a fraction of jobs in the country’s car industry. Another 1.3 million work on dealershipswhile 600,000 work in shops selling spare parts and car accessories.

Jobs in spare parts shops will probably not be affected, however delegations they could risk from the expected fall in sales.

But even those who work in the industry are in danger immediately. There are millions that provide services, including car transport and in the marketing sector.

Will the US jobs increase in the US?

Trump insisted that car duties would result in automakers to hurry to build or reopen car factories in the US, either by transporting production to unused factories, or by constructing news.

However, according to CNN, automakers do not show that they are planning to move to the US and to Invest in billions in new factories.