Trump’s Immediate Action to End the Drug War: Taxes for the Safety of Americans, and How to Properly Control Their Importers
With tariffs in place, the importer pays the fee instead of the exporting country, as Trump has claimed. The fees are usually passed to the consumer in the form of higher prices.
“This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump said in a post on Truth Social. “We need to protect Americans, and it is my duty as President to ensure the safety of all.”
One of Trump’s major campaign promises was to have tariffs, and he is considering more than one. (He’s also made threats against Denmark and Colombia.) During Trump’s inauguration speech, the president said he will “immediately begin the overhaul” of the US trade system. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”
Automotive manufacturers brace for massive impact of Trump’s tariffs: Are they going to sell their cars as they go overseas? A statement from automaker Mike Wall
“As that price goes up, consumers exit,” Wall said. They are going to wait, they are going to hold off. They may go to the used market. If pricing goes up on the new market, guess what? That pricing on the used market is gonna be impacted because it’s a supply and demand thing.”
Most automakers say they have contingency plans for tariffs but wouldn’t say exactly what those plans are. Spokespersons for Ford and BMW declined comment.
In the year 2022, Volkswagen will make 350,000 cars in Mexico for export to the US, a significant number given that it is the group’s largest factory. In a statement, the company said it “remains a strong advocate for free and fair trade.”
“We are monitoring the situation and planning for various scenarios,” the German auto giant added. We anticipate a quick resolution to tariffs across North America.
Every car company will be affected, including Ford, which makes the F-series trucks, as well as the Mazdas, the GMs and the Toyotas.
Economists expect the higher prices to be for a variety of consumer goods, from clothes to shoes, to food, to cars. Trump claims foreign companies will eat the higher costs, but don’t be fooled.
Mike Wall is the executive director for automotive analysis at S&P Global Mobility. But you will likely see fewer incentives and special deals at dealerships as dealers get stingier about their vehicle inventories. Less vehicles get made as the costs of paying 25 percent tariffs on key parts and components are taken into account. Eventually, the higher cost of building and selling a car in the US will filter down to the consumer.
EV, Public Transportation, and Aviation: Editorial by T.A.Ekman & T.C. Pearle & D.K. Chapline
is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in multiple newspapers over the years.
