Cars - tariff impact

[Anonymous]

We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

[Anonymous]

Impossible to say but plan for it. People thinking Trump is going to fix things are in for a big surprise.

[Anonymous]

Anonymous wrote:Impossible to say but plan for it. People thinking Trump is going to fix things are in for a big surprise.

More massive inflation.

[jsteele]

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

[Anonymous]

We decided to buy a new RAV4 today to replace our 2012 Outback. just in case.

[Anonymous]

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

Those parts are imported though.

That will be true of American brands too. Imported parts.

Car prices are going to jump.

[Anonymous]

Anonymous wrote:

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

Those parts are imported though.

That will be true of American brands too. Imported parts.

Car prices are going to jump.

If the dire consequences of Trump's actions actually materialize, the market will be flooded with low-mileage used cars and you pick the one you want for a huge discount.

[Anonymous]

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

It is unlikely there will be any car tarriffs on gas cars -- electric is likely. If there are on gas cars -- if the cars are built here then there will be exemptions. No parts tarriffs as that would impact Ford, GM, Jeep, and most importantly Tesla.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

Those parts are imported though.

That will be true of American brands too. Imported parts.

Car prices are going to jump.

If the dire consequences of Trump's actions actually materialize, the market will be flooded with low-mileage used cars and you pick the one you want for a huge discount.

This is the thing about Trump -- you cannot rely on what he said to predict what he will do. Most of his supporters like that so he will not make them mad if he does not follow through. He was not elected to do specific things except immigration.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

Those parts are imported though.

That will be true of American brands too. Imported parts.

Car prices are going to jump.

If the dire consequences of Trump's actions actually materialize, the market will be flooded with low-mileage used cars and you pick the one you want for a huge discount.

That make no sense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

It is unlikely there will be any car tarriffs on gas cars -- electric is likely. If there are on gas cars -- if the cars are built here then there will be exemptions. No parts tarriffs as that would impact Ford, GM, Jeep, and most importantly Tesla.

Wasn’t there a blanket tariff on “China”? 15% of a Ford Explorer is Chinese parts

[Anonymous]

He’s not really going to impose a universal tariff right? Just like repeal and replace, the wall, massive deportation?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

Those parts are imported though.

That will be true of American brands too. Imported parts.

Car prices are going to jump.

If the dire consequences of Trump's actions actually materialize, the market will be flooded with low-mileage used cars and you pick the one you want for a huge discount.

That make no sense.

I think the PP is pointing out that if the Trump administration uses ICE to remove millions of people who are out of status, there will be a lot of used cars needing to be sold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

It is unlikely there will be any car tarriffs on gas cars -- electric is likely. If there are on gas cars -- if the cars are built here then there will be exemptions. No parts tarriffs as that would impact Ford, GM, Jeep, and most importantly Tesla.

Trump was talking about putting tariffs on cars made in Mexico. About 48% of new cars in the US are imported from Mexico(19%), Korea, Japan, Germany and Canada. Trump said a 30-60% tariffs on these cars and 1000% of Chinese cars. Did not say anything about car parts. To do this with Mexico and Canada he has to leave USMCA. That would cause huge disruptions. Just the increase in food prices would shock the US consumer.

The EV thing is real. The Chinese EVs are 2 to 3 generations ahead of the US. They have cars that are equivalent of Tesla S, Porsche Macan ev or BMW i5 (ie $70-85k popular models) that are about $40k. They have cheaper models that are $10-20k(this is insane!). The scary thing is they are projecting price drops of 30% for next year or two.

The big US, Korean, Japanese and European car manufacturers are scared sh#tless of Chinese EVs. They do not see a way to compete. This includes Tesla. Telsa has not kept up with updating their cars. 3 to 5 years you could get a new EV better vs the high end EVs currently selling for $30k or less.

The unions do not like EVs because they take about 1/2 the labor hours to build vs a gas car. The battery is complex but it is highly automated. The car parts manufacturers(rust belt and Mexico) will lose out because EVs have a lot less parts. You do not need the same numbers of gas stations because 80-90% of EV cars trips are charged at home. Less maintenance(oil changes, brakes, etc) means less work for repair shops mechanics. This is one of the reasons the unions voted for Trump. Though it is most likely a losing battle.

If EVs become widely accepted (let’s say 50% of the new cars sold) work force in the car manufacturing and parts will likely be 1/2 of what it is today. Remember an $20-$30k car will get a lot of people looking. Add in the reduced demand for gas and oil. EVs are very scary!

[Anonymous]

jsteele wrote:

Anonymous wrote:We need a new car. Probably a Kia/Honda/Toyota. Will they likely see price increases with Trumps tariffs? Or will he push in lower rates which will make financing cheaper?

All three of those manufactures have U.S.-based factories. So at least some of their cars should be tariff-free.

That's what he said. Companies manufacturing products in US will pay 15% in taxes. Outside the US will pay tariffs. We'll see if it plays out.