Why Trump's auto tariffs will hurt his working-class supporters
Portfolio Pulse from
President Trump's proposed 25% tariff on imported vehicles could significantly increase car prices, particularly impacting lower-income consumers. The tariffs would affect nearly all affordable new cars under $30,000, which are primarily manufactured in Mexico, South Korea, and Japan. This could push buyers out of the new car market and drive up used car prices.
March 30, 2025 | 12:30 pm
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NEGATIVE IMPACT
Ford's compact Maverick truck and Bronco Sport, manufactured in Mexico and already priced above $30,000, could become even less accessible to budget-conscious consumers.
Tariffs could further increase prices of Ford's more affordable models, potentially reducing their market competitiveness.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
GM's under-$30,000 models like Buick Envista and Chevrolet Trax, manufactured in South Korea, could become less competitive or unaffordable due to potential tariff-driven price increases.
Tariffs could increase prices of GM's affordable models, potentially reducing their market attractiveness and sales volume.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80