Think your car is American-made? Think again.

Posted by Sanebull on
Think your car is American-made? Think again.

Automakers are not happy… because the Commerce Department is considering slapping tariffs on cars made in foreign plants and on foreign-made auto parts. These tariffs are bad news for car companies because every vehicle sold in America is at least partially imported. In other words, these taxes would raise costs – even for domestic car companies.

The most “American-made” automobiles are… still comprised of at least 25% imported parts. There is no way around this either because American auto parts makers can’t produce all of the necessary components. Additionally, all major automakers build some cars in Mexico and would pay a tariff on those vehicles, as well.

You can run, but you can’t hide… because the cost of tariffs is unavoidable for all car companies. Expect higher car prices, lowered sales and lost jobs, as a result of the proposed taxes. Trade wars are fun, huh?

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