Aug. 14, 2018—Following recent analysis, the Center for Automotive Research (CAR) noted that the U.S.’s potential tariffs on automobile imports and imported parts could cause a significant increase in the price per vehicle.
According to CAR’s findings, which were commissioned by the National Automobile Dealers Association (NADA), the average price of imported vehicles would increase roughly $4,400, and even the price of U.S.-built vehicles would increase as much as $2,270 due to the current share of imported parts content.
CAR concluded that, rather than help the U.S. automotive and parts industries, a steep tariff on automotive and parts imports would lead to up to 2 million fewer U.S. light vehicle sales, 714,700 fewer U.S. jobs, and $59.2 billion lower U.S. economic output.
What’s more, U.S. new-car dealerships could lose as many as 117,500 jobs and $66.5 billion in revenue.
“Tariffs and quotas on automobiles and automotive parts will not strengthen the U.S. economy, or make U.S. automakers and suppliers more competitive in the global market,” said Carla Bailo, CAR’s CEO and president.
