Trump’s Car Tariffs: Will They Really Be Good for America?

President Trump just signed off on something big: a 25% tariff on imported cars and car parts. It’s set to kick in on April 3rd, says The New York Times .But what’s the real story ?Will this actually help America ?

Trump says it’s about bringing jobs back home. He wants automakers to build their cars here, not overseas. His take? If you build in the U. S. , you skip the tariff. Simple, right?

“If you have plants in the United States, it’s going to be good for,” Trump said.

Imported Cars: A Big Piece of the Pie

Here’s a surprise: Almost half the cars sold in the U. S. last year were imports, according to GlobalData. Mexico led the pack, shipping over $78 billion worth of cars to the U. S. Japan, South Korea, and Canada also sent a ton.

Think about this: Toyota, a Japanese brand, is one of the top three best-selling car brands here, alongside Ford and General Motors.

Who Gets Hit Hardest?

Axios says Volvo, Mazda, and Volkswagen will feel the pinch. They build only a small fraction of their U. S. -sold cars here – 20% or less. Hyundai-Kia, Mercedes, BMW, and Toyota will also be affected. Less than half their U. S. cars are made in the U. S.

Even American giants like General Motors, Ford, and Stellantis (Jeep) have big operations in Mexico. What does this all mean?

Buckle Up: Car Prices Could Jump

Experts think car prices will go up. Automakers will likely pass some of the tariff costs onto buyers. Wedbush analysts told Business Insider to expect car prices to rise by $5,000 to $10,000. Anderson Economic Group? They’re predicting an increase of $4,000 to $12,200.

More Than Just Jobs?

The Trump administration sees these tariffs as more than just a way to boost U. S. manufacturing. They could also bring in serious cash. The Associated Press reports the White House expects to rake in $100 billion a year from these tariffs.

A Union Win?

The United Auto Workers (UAW), a union with over 400,000 members, is cheering Trump’s move. They called it “a major step in the right direction for autoworkers and blue-collar communities across the country. ”

Their statement suggests thousands of good-paying auto jobs could return to the U. S. “simply by adding additional shifts or lines in a number of underutilized auto plants. ”