U. S. Cars: Tariff Wars and Manufacturing In A Globalized World

This: A border wall in the distance, a rowof trucks laden with vehicles are ready to enter the U. S. The auto industry in the US is feeling the heat of possible tariffs on autos from Canada and Mexico. Before February 1, the industry hasn't had a solid strategy but guess what, they need to! It is unclear what will really happen, but things are heating up. Trump's promised taxes on imports has caused a stir among leaders of auto brands. General Motors led the group, worried about these potential trade issues. Uncertainty has made the future really unclear, affecting stock records of GM and other car brands. General Motors has to plan for their business, but what could happen here? These tariffs could just add money on imported goods into the U. S on the automakers side. To cover for taxes, these companies may increase the cost of cars. Stability is needed as we warned by industry experts, companies may even start cutting back on auto parts to save money. Potential impact look something like this, adding over $5 billion for every level of duty! But the issue isn't limited to one country. German Motors factories in the United States rely heavily on parts and vehicles from their factories in Mexico. Largely unknown to many, Mexico exports a majority of its car parts to the U. S. Requirements in America keep on increasing, so expectations for car imports hit approximately 70% of U. S. sales by top automakers in 2024. Think about this; industry analysis expects that the cost of cars will rise significantly if these tariffs are put into effect. Financial investors estimate the impact and predict a huge rise in vehicle prices in America for a variety of reasons. Remember, control is always needed in auto manufactures; but part of that big risk for automakers is lack of information and instability of the economy energy. Be expecting some big changes; but itmight not happen when ticks. .