Trump's tariffs raise car prices by $4000 and increase industry costs by $100 billion.

The customs duties imposed by U.S. President Donald Trump on imported cars, amounting to 25%, have had a significant impact on the global automotive industry, despite recent retreats from imposing new tariffs by other countries. However, according to economic analyses, massive repercussions are looming on the horizon for the sector, with expectations that over $100 billion will be added to industry costs, subsequently affecting car prices, both new and used. Forecasts indicate that customs duties will lead to a price increase of $2000 to $4000 in the American market in the coming months, significantly reducing sales. Boston Consulting Group (BCG) expects customs duties to raise between $110 and $160 billion in automotive sector costs globally, affecting nearly 20% of new car market revenues in the United States. The impact of these duties will be particularly evident in major American car companies, with an estimated $107.7 billion increase in manufacturing costs for U.S. car companies, primarily affecting Detroit companies like General Motors, Ford Motor, and Stellantis, the parent company of Chrysler. With the new customs duties on car parts set to be implemented in May, the near future seems to hold significant challenges for the automotive industry. While some companies may absorb part of the cost increase, American consumers are expected to bear the brunt, leading to a decrease in car demand. In this context, analysts at Goldman Sachs predict a significant increase in new car prices, ranging from $2000 to $4000 in the coming months, contributing to a decline in consumer confidence, as a survey from the University of Michigan shows expected inflation levels in April to be the highest since 1981. Estimates from the automotive consulting company "Telemetrics" suggest that the rise in production and spare parts costs will lead to a decrease in car sales in the United States and Canada by over two million vehicles annually, with negative implications for the broader U.S. economy. Regarding imported car prices, Cox Automotive consultancy expects costs for cars assembled outside the U.S. to increase by around $6000, in addition to a $3600 increase for cars assembled within the U.S., due to the new customs duties on car parts. These price increases, coupled with deteriorating market confidence, pose economic challenges that may affect not only the automotive sector but the U.S. economy as a whole.