From Yahoo Finance: 2025-03-27 12:14:00

President Trump’s new tariffs on imported autos could lead to a rise in car prices, forcing buyers to hold onto older vehicles longer. The move could result in the “Cubanization” of the US auto fleet, mirroring Cuba’s reliance on vintage cars due to import restrictions. The tariffs, set to begin on April 3, will impose a 25% tax on all imported cars and major components. Morgan Stanley estimates this could increase the average car price by $6,000, affecting both imports and domestic vehicles. Higher prices may deter some buyers, leading to a shift towards the used car market and potentially impacting safety, technology adoption, and fuel prices. The auto industry is concerned about the potential long-term effects of the tariffs and the uncertainty surrounding trade partner retaliation. Investors are unsure if the tariffs will remain in place or be reversed, leaving the global auto industry in suspense.



Read more at Yahoo Finance: Trump risks the ‘Cubanization’ of the US auto fleet