Economists estimate new tariff costs to range between $2,000 to $12,000 per vehicle
A Michigan economics group, calculating tariff impact after President Donald Trump's latest executive orders, has estimated that the least-impacted vehicles will still face a $2,000 tariff and the most impacted will see a tariff of $15,000.
Anderson Economic Group started analyzing the costs of tariffs imposed on a variety of vehicles sold in the United States as soon as Trump signed his latest executive orders on auto tariffs, Patrick Anderson, CEO of the consulting firm, told the Detroit Free Press.
The firm's new estimates include the changes Trump made on April 29 intended to provide some relief to automakers who assemble vehicles in the United States but use foreign parts in them. The order provides a small break on tariffs for two years to allow automakers time to re-source parts from domestic suppliers.
File photo taken on June 8, 2017. Employees inspect Mercedes-Benz C-Class cars at the Mercedes-Benz US International factory in Vance, Alabama.
"The adjustments provide significant and beneficial softening of the cost impact of these tariffs, at least for U.S.-assembled vehicles," said Anderson, who is the lead author of this study. "However, the cost is still substantial for most American cars and trucks.'
Some vehicles will see a $15,000 hit
Anderson noted that many U.S. consumers have been taking no chances, saying, 'The sales surge in March confirms that Americans expect prices to go up because of tariffs, and the revised (Anderson Economic Group) estimates confirm they are right."
Anderson Economic Group estimated the tariff costs under the adjusted policy as follows:
◾Lower impact: These are vehicles assembled in the United States with substantial U.S. parts content. The estimated tariff costs will be $2,000 to $3,000 per vehicle. Examples: Honda Civic, Honda Odyssey, Chevrolet Malibu, Toyota Camry Hybrid and Ford Explorer.
◾Medium impact: Vehicles in this group will pay a tariff of $4,000 to $8,000. Some Jeep and Ram truck models are in this category, as are the Chrysler Pacifica van, BMW X3, Ford Bronco Sport and Volkswagen Jetta. Some vehicles assembled in Texas, such as the Chevrolet Suburban and GMC Yukon large SUVs, will see a tariff of just under $8,000, a reduction from the previous estimate of $11,000 in tariffs before Trump adjusted the tariffs.
◾High impact: These are mostly full-size luxury SUVs, some all-electric vehicles and cars assembled in Europe and Asia. The tariff impact on these vehicles will be $10,000 to $12,000, with some EVs and European and Asian luxury vehicles having an estimated tariff exceeding $15,000. Mercedes G-Wagon, other Mercedes sedans, Land Rover and Range Rover vehicles, some BMW models and the Ford Mach-E, fall into this group.
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