Fourth of July car commercials are traditionally just a background distraction during backyard barbecues. But this year, you might want to pay attention. President Trump is currently considering imposing big tariffs on foreign cars, which would increase their sticker prices by thousands of dollars.
Think you can get around these tariffs by buying a Ford?
Think again. Tariffs on foreign goods give domestic producers a buffer to raise their prices.
Witness the skyrocketing prices of U.S. steel following Trump’s tariffs on foreign imports.
Perhaps higher car prices are worth it if they boost domestic manufacturing? That premise is faulty because higher prices reduce demand and cost jobs. Not to mention the consequences to domestic exporters from the retaliatory tariffs they’d spur.
That’s why no domestic car company supports them.
Two choices: Give up your Fourth of July weekend to buy a new car before prices jump. Or call your Member of Congress and demand legislation to rein in Trump’s trade war-mongering.
Jordan Bruneau Senior policy analyst Republicans Fighting Tariffs
