The price of certain vehicles will increase by up to 25% and the negative impact on the price and availability of vehicles will be felt immediately
A commercial group representing almost all major automakers warned Tuesday that new 25% duties on imports from Canada and Mexico imposed by the US president Donald Trump will lead to drastic price increases.
“All automakers will be influenced by these duties in Canada and Mexico”said John Bozzella, who leads the alliance for innovation in the automotive industry that represents all major US automakers except Tesla, according to the Reuters. Members include them: General Motors, Ford, Toyota, Volkswagen, Hyundai and Stelantis.
“Most expect the price of certain vehicles to increase by up to 25% and the negative impact on the vehicle price and on the availability of vehicles will be felt almost immediately.”
The automakers are sounding the alarm that invoices will disturb the supply chain throughout North America that has been valid for more than 25 years.
“Because the industry is very unified throughout North America, these duties will set the flagship Chrysler, Dodge, Jeep and Ram of Stellantis to a competitive disadvantage over the Koreans, Japanese and European importers, “the automaker said in an email that saw the Reuters.
Many automakers met with the Minister of Commerce Howard Lutnik Last week to encourage administration not to make wide duties.
Last month, Ford’s CEO of Jim Farley He warned that 25% duties in Mexico and Canada would “open a hole” in the US automaker. ‘What we see is a great deal of cost, a lot of chaos’he said last month.
United Auto Workers praised Trump, marking his plans for further tariff actions in April.
“We are glad to see an American president taking off aggressive action to end the destruction of free trade that fell like a bomb in the working class.”the union said. “We are looking forward to working with the White House on the formation of cars in April for the benefit of the working class.”
The US International Car Representative Association noted that delegates are already facing increasing vehicles and spare parts and high interest rates. “Duties could directly contribute to thousands of additional dollars to sticker prices”, The team said.
Source: Skai
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