President Donald Trump's tariffs are already causing consternation among car dealers, who are warning that blanket tariffs on all products from Mexico and Canada are going to massively jack up car prices for consumers.
In an interview with the Washington Post, Texas-based Volkswagen dealer John Luciano said that going to be absolutely shocked by the markups they are about to see.
“We have cars landing tonight, which means tomorrow’s cars are going to be more expensive,” he said. “I’m not sure the consumer has caught on yet to how much cars are going to go up, but it’s going to be big.”
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As cars are being made, they receive parts that have passed through sections of both Mexico and Canada before landing at their final destinations at auto plants.
Slapping tariffs on each one of these parts every time they cross the border into America is projected to add thousands of dollars to a car's final price.
An analysis published by Bloomberg earlier this week estimated that Trump's tariffs "risk driving up US car prices by as much as $12,000, further squeezing consumers and wreaking havoc across the intricate web of automotive supply lines spanning the continent."
