Economists estimate new tariff costs to range between $2,000 to $12,000 per vehicle
Show Caption
Hide Caption
Gov. Gretchen Whitmer agrees with Donald Trump on manufacturing, not widespread tariffs
Michigan's Governor Gretchen Whitmer delivered a speech in Washington, D.C. for 'Build, America, Build."
Anderson Economic Group has estimated that Trump's revised tariffs on parts still results in tariffs of $2,000 to possibly $15,000 per vehicle.
The Ford Mach-E still falls into a high tariff group because it is built in Mexico.
A Michigan economics group, calculating tariff impact after President Donald Trump's latest executive orders, has estimated that the least-impacted vehicles will still face a $2,000 tariff and the most impacted will see a tariff of $15,000.
Anderson Economic Group started analyzing the costs of tariffs imposed on a variety of vehicles sold in the United States as soon as Trump signed his latest executive orders on auto tariffs, Patrick Anderson, CEO of the consulting firm, told the Detroit Free Press.
The firm's new estimates include the changes Trump made on April 29 intended to provide some relief to automakers who assemble vehicles in the United States but use foreign parts in them. The order provides a small break on tariffs for two years to allow automakers time to re-source parts from domestic suppliers.
"The adjustments provide significant and beneficial softening of the cost impact of these tariffs, at least for US-assembled vehicles," said Anderson, who is the lead author of this study. "However, the cost is still substantial for most American cars and trucks.'
Some vehicles will see a $15,000 hit
Anderson noted that many U.S. consumers have been taking no chances saying, 'The sales surge in March confirms that Americans expect prices to go up because of tariffs, and the revised (Anderson Economic Group) estimates confirm they are right."
Anderson Economic Group estimated the tariff costs under the adjusted policy as follows:
Lower impact : These are vehicles assembled in the United States with substantial U.S. parts content. The estimated tariff costs will be $2,000 to $3,000 per vehicle. Examples: Honda Civic, Honda Odyssey, Chevrolet Malibu, Toyota Camry Hybrid and Ford Explorer.
: These are vehicles assembled in the United States with substantial U.S. parts content. The estimated tariff costs will be $2,000 to $3,000 per vehicle. Examples: Honda Civic, Honda Odyssey, Chevrolet Malibu, Toyota Camry Hybrid and Ford Explorer. Medium impact : Vehicles in this group will pay a tariff of $4,000 to $8,000. Some Jeep and Ram truck models are in this category, as are the Chrysler Pacifica van, BMW X3, Ford Bronco Sport and Volkswagen Jetta. Some vehicles assembled in Texas, such as the Chevrolet Suburban and GMC Yukon large SUVs, will see a tariff of just under $8,000, a reduction from the previous estimate of $11,000 in tariffs before Trump adjusted the tariffs.
: Vehicles in this group will pay a tariff of $4,000 to $8,000. Some Jeep and Ram truck models are in this category, as are the Chrysler Pacifica van, BMW X3, Ford Bronco Sport and Volkswagen Jetta. Some vehicles assembled in Texas, such as the Chevrolet Suburban and GMC Yukon large SUVs, will see a tariff of just under $8,000, a reduction from the previous estimate of $11,000 in tariffs before Trump adjusted the tariffs. High impact: These are mostly full-size luxury SUVs, some all-electric vehicles and cars assembled in Europe and Asia. The tariff impact on these vehicles will be $10,000 to $12,000, with some EVs and European and Asian luxury vehicles having an estimated tariff exceeding $15,000. Mercedes G-Wagon, other Mercedes sedans, Land Rover and Range Rover vehicles, some BMW models and the Ford Mach-E, fall into this group.
Anderson said that because the list prices and content on specific vehicles within model lines vary considerably, so will the tariff impact.
General Motors, however, disagreed with some of Anderson's findings. GM spokesman Jim Cain said, 'The calculation on the large SUVs overstates GM's tariff exposure on those vehicles. It is almost guesswork.'
Class action lawsuits: Automaker GM knew about V8 engine problems for years before giant, lawsuit claims
Cain declined to provide the exact dollar exposure the large SUVs may have to tariffs, saying that is proprietary information.
Anderson said he stood by the calculation, citing GM's filings with the U.S. government as the source for how much U.S. content GM has in those vehicles, hence its tariff exposure.
Trump's tariff tweak helps only a little
On April 3, Trump put a 25% tariff — the tax an importer pays on a good when it crosses international borders — on all imported vehicles to encourage more U.S. manufacturing. Trump was set to then enact 25% tariffs on all imported parts starting May 3. But given that most vehicles assembled in the United States contain a lot of imported parts, the duties on those parts would run into thousands of dollars per vehicle.
So on April 29, the administration modified its 25% tariffs on foreign auto parts. In a complex formula, the executive orders Trump signed will now allow automakers to be reimbursed for those tariffs up to an amount equal to 3.75% of the value of a U.S.-made car for one year. The reimbursement drops to 2.5% of the car's value in a second year, and then is phased out.
"The April 29 proclamation reduces tariff costs for some vehicles assembled in the United States, butdoes not eliminate tariff costs from any vehicle we studied," Anderson said in the study's news release. "For vehicles assembled in other countries, including those assembled using substantial U.S. content, the new policy does not significantly reduce the cost of the automotive tariffs."
For example, the all-electric Ford Mach-E is assembled in Mexico and has a list price of about $55,000. Anderson said before the April 29 executive order, it had a tariff exceeding $12,000. He said it will still have that high tariff.
But the Ford Explorer, which Ford assembles in Illinois and has a list price of about $50,000, previously had a tariff impact of about $4,300. That will drop to about $2,400, under the new rules. For specifics on the study and Anderson's methodology visit its website at www.andersoneconomicgroup.com.
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
a minute ago
- New York Post
Democrats self-own bragging about inflation shows the left has learned NOTHING
Everybody makes mistakes. Not everyone makes the same mistakes over and over again. Last week, the geniuses in charge of maintaining the Democratic Party's social media picked at a fresh wound — and showed, again, exactly why it lost the 2024 election. The blue team's official X account shared a line chart showing the change in the price of various groceries — meat, dairy, produce, etc. — over time, and asserting that 'prices are higher today than they were on [sic] July 2024.' 'Trump's America,' read the caption. The problem? The last part of the line barely went up. The blue team's official X account, with the caption 'Trump's America,' shared a chart showing the change in the price of various groceries, asserting that 'prices are higher today than they were on [sic] July 2024.' Eric Daugherty, /X And what it actually showed was a massive increase in prices between 2021 and 2024. In other words: over the course of former President Joe Biden's White House tenure. 'I would just advise Democrats not to post about inflation given their track record,' suggested conservative influencer A.G. Hamilton. 'Might save them the embarrassment of having to delete their posts after getting dunked on' — which is exactly what they did. 'This is the gang that couldn't shoot straight!' marveled Fox Business host Stuart Varney. And of course Team Trump got in on the action. The problem with the chart was that it actually showed a massive increase in prices between 2021 and 2024 – when Biden was president. RapidResponse47/X What's notable about the braindead blunder, though, is not the blunder itself. It was that it represented yet another admission, eight and a half months after they surrendered the presidency to Donald Trump for the second time in three election cycles, that the Democrats still haven't made a sincere effort at diagnosing the reasons for their unpopularity — much less addressing them. A new Wall Street Journal poll found that their party continues to suffer as a result — to the point that just 33% of Americans hold a favorable view of it, and 63% view it unfavorably. Both Donald Trump (-7) and the GOP (-11) are also underwater, but may as well be polling as well as ice cream compared to the Democrats. The same holds true of the public's view of various issues; voters still trust the GOP more than the alternative when it comes to the economy, inflation, immigration and foreign policy. If that doesn't wake Democrats up to the provenance of all their political pain, nothing will. The Left has long relied on comforting fallacies to numb the discomfort that accompanies defeat. After 2016, elected Democrats and their media allies insisted that Trump's shocking victory was only possible thanks to Russian meddling. And now, they're laboring under the misimpression that return to power can be attributed to Republicans' superior, but decepting messaging — an almost supernatural ability to compel Americans to believe that which isn't so. If only they could convince the public of the truth, they'd surely prevail. But the cold, hard truth is that it's always been about the substance, stupid — as the unflattering data they so proudly shared last week demonstrates. Kamala Harris was deposited into the dustbin of history because she was the top lieutenant in an administration that had proven a miserable failure long before her boss's implosion last summer. Americans spent the entirety of the Biden years telling pollsters that their lives were demonstrably, palpably worse as a result of historic price hikes. Biden & Co. responded to these pleas for relief by denying the existence of inflation until they couldn't any longer. Then, when they finally did implicitly admit to the effects of the nearly $2 trillion boondoggle they passed in 2021, they slapped the name 'Inflation Reduction Act' on yet another profligate spending bill that every layman in America knew would only compound the problem. There are similar stories to be told about Americans' dissatisfaction with Biden's approach to foreign policy, his abdication of his duty to secure the border, and his championing of a radical social agenda that maintains up is down, left is right, and black is white. Their stubborn refusal to grapple with this incontrovertible truth is also reportedly set to be reflected in an upcoming 2024 autopsy conducted by the DNC. The New York Times reports that it will 'steer clear of the decisions made by the Biden-turned-Harris campaign,' and instead 'focus more on outside groups and super PACs that spent hundreds of millions of dollars aiding the Biden and Harris campaigns through advertising, voter registration drives and turnout efforts.' It's like watching a restaurant serving inedible food invest in new plateware. The gripe has never been with the Democrats' presentation or voters' tastes. It's with the product itself.
USA Today
a minute ago
- USA Today
Mike Johnson says Ghislaine Maxwell should serve 'life sentence,' opposes potential pardon
House Speaker Mike Johnson, R-Louisiana, said he believes Ghislaine Maxwell, a key associate of Jeffrey Epstein currently serving 20 years in prison for conspiring to sexually abuse minors, should face "a life sentence." "If you're asking my opinion, I think 20 years was a pittance," Johnson told NBC's Kristen Welker on "Meet the Press" July 27. "I think she should have a life sentence, at least." His remarks to NBC come as many, including supporters of President Donald Trump, clamor for testimony from Maxwell. Some followers of the case have proposed a pardon in exchange, but Trump told reporters on July 25 he hadn't considered the move. "I'm allowed to do it, but it's something I have not thought about," the president said. Epstein was charged with sexually trafficking minors and died by suicide while in detention in 2019. Maxwell, his longtime girlfriend, has been accused of recruiting minors for the disgraced financier's predation. Maxwell maintains her innocence and is appealing her 2021 sex-trafficking conviction. Johnson in his interview with NBC reiterated that pardons aren't up to him, telling the outlet, "obviously that's a decision of the president." "I won't get it in front of him," Johnson said. "That's not my lane." But, later in the interview he noted, "It's hard to put into words how evil this was, and that she orchestrated it and was a big part of it." "So, again, not my decision," he added, "but I have great pause about that, as any reasonable person would." The Trump administration for weeks has faced backlash over its handling of Epstein's case. Critics from Democratic lawmakers to prominent Republicans and slices of Trump's voter base accuse the president and other officials of not being transparent with the American people. The speaker has faced his own ongoing Epstein-related criticism, as some House Republicans have zeroed in on the Justice Department's recent review of Epstein's case and are calling for related documents to be released publicly. Democrats in Congress have piled on too. Reps. Ro Khanna, D-California, and Thomas Massie, R-Kentucky, introduced a bipartisan measure to force the Trump administration's hand in releasing the federal government's files. Also on "Meet The Press," the pair split on pardoning Maxwell. "That would be up to the president," Massie said. "But if she has information that could help us, then I think she should testify. Let's get that out there. And whatever they need to do to compel that testimony, as long as it's truthful, I would be in favor of." Khanna disagreed, saying Maxwell shouldn't receive a pardon. "Look, I agree with Congressman Massie that she should testify," the California Democrat said. "But she's been indicted twice on perjury. This is why we need the files. This is why we need independent evidence." Contributing: Bart Jansen and Aysha Bagchi, USA TODAY
The Hill
a minute ago
- The Hill
Trump insists Hamas is stealing food amid Gaza hunger crisis
President Trump on Sunday said Hamas is stealing food that was meant for people in Gaza, telling reporters multiple times that goods are being stolen when pressed on the hunger crisis in the region. The president, while sitting next to President of the European Commission Ursula von der Leyen in Turnberry, Scotland, was asked for his response to the images of starving children in Gaza. 'When I see the children and when I see, especially over the last couple of weeks people are stealing the food, they're stealing the money, they're stealing the money for the food. They're stealing weapons, they're stealing everything,' the president said. He added, 'It's a mess, that whole place is a mess. The Gaza strip, you know it was given many years ago so they could have peace. That didn't work out too well.' The Israeli military has reported that there is no proof that the Palestinian militant group had systematically stolen aid. Earlier on Sunday, Israel's military said it will start a 'tactical pause' in fighting in Gaza amid mass starvation concerns. Trump said he spoke recently with Israeli Prime Minister Benjamin Netanyahu, adding, 'I talked to him about a lot of things. I talked to him about Iran.' He said the U.S. would send more aid into Gaza and pressed other nations to contribute as well, suggesting that would be part of his conversation with der Leyen. And, he reiterated the claims about Hamas stealing food. 'It's not a U.S. problem, it's an international problem,' Trump said on Gaza. 'If we weren't there. I think people would have starved, frankly. They would have starved, and it's not like they're eating well, but a lot of that food is getting stolen by Hamas. They're stealing the food, they're stealing a lot of things. You ship it in and they steal it, then they sell it,' he said. House Speaker Mike Johnson (R-La.) also insisted that Hamas has stolen the food on NBC's 'Meet the Press' on Sunday and noted that Yechiel Leiter, Israel's ambassador to the U.S., and other Israeli officials told him that Hamas has stolen 'a huge amount' of food since the start of the conflict on Oct. 7, 2023. Trump on Sunday said that the U.S. gave $60 million in aid for Gaza two weeks ago, but said that 'nobody even acknowledged it.' 'Nobody acknowledged it, nobody talks about it, and it makes you feel a little bad when you do that, and no other countries give anything,' he said. He said that Israel has to decide what happens next in the Israel-Hamas conflict in Gaza. 'What's going to happen? I don't know,' Trump said. 'Israel's going to have to make a decision. I know what I'd do but I don't think it's appropriate that I say.' The Trump administration last week said it was leaving Gaza ceasefire talks, blaming Hamas for failing to engage in good faith. Steve Witkoff, Trump's special envoy for peace missions, said the administration is considering alternative plans to secure the freedom of Israeli hostages held by Hamas and the future governance of the territory.
