Anybody looking to purchase a new car could feel a dramatic impact in the wallet. Here’s why…
As the trade war intensifies and president Donald Trump continues to hold firm on raising tariffs, many are feeling the pinch. If you’re looking for a new car though, your wallet could be dramatically impacted, as those higher taxes could raise the cost of a vehicle $7000.
Along with Trump’s other protectionist moves, the imposed duties threaten to undermine vibrant economic growth fueled in part by last year’s double-digit corporate tax cuts, according to The Washington Examiner. So far, Americans at the bottom of the income ladder will be hit the hardest as an increase in price will further stretch an already thin budget and some of the highest expenses like tires, have begun to cause financial pain.
Car buyers are also going to feel the effects of the tariffs, but some lawmakers aren’t sure it’s the right way to enact a change in China’s behavior. “Our focus should be building on the benefits of historic tax reform achievement earlier this Congress,” said Senator Orrin Hatch, the retiring Utah Republican who chairs the finance committee. “Our trade policy should strengthen our relationships with our allies while targeting China’s most harmful trade practices. Tariffs on autos and auto parts are not going to help us achieve any of these things.”
And automotive manufacturers don’t only have a tariff on the vehicles to worry about. They are grappling with higher prices for American steel and aluminum, Rick Schostek, the executive vice president of Honda North America, told senators. Adding duties to cars and car parts “will put American workers, consumers, communities and the economy at risk,” he said. “That’s what Honda has joined every automaker in the U.S.” in opposing them, he said. The truth is, all Americans should be opposing additional taxes, which amount to theft from the consumer. Does anyone remember when a catalyst for war began over a 3% tax on tea? Apparently not.
Car makers previously warned the Commerce Department during that the duties Trump has imposed would push up their supply costs, curb American exports and, ultimately, cost well-paying jobs that the president has promised to increase.“Import tariffs could lead to a smaller GM, a reduced presence at home and abroad,” and fewer, not more manufacturing positions, which has a U.S. payroll of 110,000.