(Photo Credit: Koji Sasahara/AP/dapd)
As the trade war intensifies and president Donald Trump continues to hold
firm on raising tariffs, many are feeling the pinch. If you’re looking for a
new car though, your wallet could be dramatically impacted, as those higher
taxes could raise the cost of a vehicle $7000.
Along with Trump’s other protectionist moves, the imposed duties threaten to undermine vibrant economic
growth fueled in part by last year’s double-digit corporate tax cuts, according to The Washington Examiner. So
far, Americans at the bottom of the income ladder will be hit the hardest as
an increase in price will further stretch an already thin budget and some of
the highest expenses like tires, have begun to cause
financial pain.
Car buyers are also going to feel the effects of the tariffs, but some
lawmakers aren’t sure it’s the right way to enact a change in China’s
behavior. “Our focus should be building on the benefits of historic tax
reform achievement earlier this Congress,” said Senator Orrin Hatch, the
retiring Utah Republican who chairs the finance committee. “Our trade policy
should strengthen our relationships with our allies while targeting China’s most
harmful trade practices. Tariffs on autos and auto parts are not going to
help us achieve any of these things.”
And automotive manufacturers don’t only have a tariff on the vehicles to
worry about. They are grappling with higher prices for American steel and aluminum, Rick
Schostek, the executive vice president of Honda North America, told senators.
Adding duties to cars and car parts “will put American workers, consumers,
communities and the economy at risk,” he said. “That’s what Honda has joined
every automaker in the U.S.” in opposing them, he said. The truth is,
all Americans should be opposing additional taxes, which amount to theft from
the consumer. Does anyone remember when a
catalyst for war began over a 3% tax on tea? Apparently not.
Car makers previously warned the Commerce Department during that the
duties Trump has imposed would push up their supply costs, curb American
exports and, ultimately, cost well-paying jobs that the president has
promised to increase. “Import tariffs could lead to a smaller GM, a reduced presence at home and abroad,” and fewer, not
more manufacturing positions, which has a U.S. payroll of 110,000.
