According to Bloomberg, the impending tariffs that President Donald Trump has promised to impose on Mexico and Canada are likely to result in a significant increase in the cost of new automobiles in the United States.
As a matter of fact, Bloomberg reports that the tariffs have the potential to increase the cost of automobiles in the United States by as much as twelve thousand dollars, so further putting pressure on consumers and wreaking chaos across the complex network of automotive supply lines that cover the continent.
In the research, a new analysis conducted by the Anderson Economic Group is cited as evidence that the tariffs could have a particularly severe impact on electric vehicles. The report also indicates that the production costs of electric vehicles would increase by a factor of three, which is three times higher than the cost of constructing crossover utility vehicles.
In addition, the tariffs might be so substantial that they would cause the manufacturing of particular automobile models that are constructed in part in Canada or Mexico to be halted, The Raw Story reports.
In an interview with Bloomberg, Patrick Anderson, chief executive officer of Anderson Economic Group, stated that the kind of cost increase will lead straight to a fall in sales of the models that have the most significant trade implications, and he anticipates that this decline will occur fairly quickly.
Bloomberg also reports that executives from the three largest automobile manufacturers in the United States, General Motors, Ford, and Chrysler, issued a warning to the Commerce Department last week about the “dire consequences” that would befall their business in the event that the tariffs were implemented.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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