Investment advisor sees 'pure chaos' in auto industry from tariffs

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2. 'Donald Trump's 25 Percent Tariffs Could Kill Off The Cheap Car'

"The full impact of the tariffs remains to be seen, but experts are warning that the fallout could hit cheaper cars much more severely, reports Bloomberg. Finding a cheap car is already a tough task, with average prices in America edging ever closer to $50,000. Picking a bargain could now get much harder with sub-$30,000 cars likely to feel the brunt of Trump's tariffs for several reasons:"

"The tariffs could disproportionately hit cheaper cars because many of the most affordable models sold here simply aren't made here. The least expensive offerings from General Motors, Ford, Kia and Hyundai are assembled outside the U.S. at plants in Canada and Mexico, which will fall foul to the new fees."

"The cost of these budget-friendly models made outside the U.S. could be set to rise by as much as $5,855 on average, Bloomberg adds, which could mean the difference between buying a new car and not for some shoppers. It's for this reason that Stellantis chairman John Elkann warned that the 'affordability of our products' and the current 'uncertainty' in the U.S. could hit demand across the country."

https://www.jalopnik.com/1821074/trump-25-percent-auto-tariffs-could-kill-cheap-cars/