Kurt Myers
Historic tariffs? Expect to pay more…
Global markets fell sharply while Wall Street taking another ‘tumble’ this morning after President Trump’s historic tariff announcement on Wednesday, which threatens to plunge the US and global economies into a recession.
Baseline tariffs of 10% will go into effect on Saturday (April 5),while the higher reciprocal rates will take effect next week (April 9). In addition, the Trump administration will place a 25% tariff on all foreign-made automobiles, beginning at midnight tonight. https://www.cnn.com/politics/live-news/trump-tariffs-news-04-03-25/index.html?t=1743688859041
What does all of this tariff talk mean to us?
Expect higher prices for cars, groceries, housing and other goods impacted by the tariffs. Low-income households will feel the ‘tariff pinch’ the most. Farmers are expected to bear the brunt of these trade tensions. Canada and China were the second and third-largest destinations for U.S. agricultural products in 2024, according to the American Farm Bureau Federation. www.scrippsnews.com/politics/president-trumps-first-100-days/what-trumps-new-tariffs-will-mean-for-us-consumers
With a 25% tariff about to hit every imported car, many Americans are wondering do I need to buy a vehicle before tariffs go into effect, or wait to see how things will play out? The simple answer is to buy now, experts say, especially if you are already in the market for a car. Traffic on both Kelley Blue Book and Autotrader.com increased by 30% between last Wednesday, the day tariffs were announced, and Monday, compared to the same time period last year. https://www.cnn.com/2025/04/02/cars/should-you-buy-or-lease-a-car-now/index.html?utm
Trump says Americans can avoid the tariffs by buying vehicles made entirely in the U.S., but there’s a catch. No cars are built using 100% American-made parts.
Experts say around 40% of all car parts, from sensors to steering wheels, come from other countries. Even Tesla sources up to 25% of its parts from Mexico. That means nearly every car, even ones assembled in the U.S., could face higher costs at the dealership. One study estimates the tariffs could increase car prices from $4,000 to $12,000, depending on the model. The president’s 25% tax on foreign vehicles and auto parts is expected to have a big impact on the automotive industry. Even if you buy from an American brand like Ford, Tesla or General Motors, those companies rely on global supply chains.
The Trump administration says the tariffs are part of a long-term strategy to bring manufacturing jobs back to America. Until then, drivers should expect to pay higher prices because there’s no easy way around the tariff.
