CNN
—
President Donald Trump’s auto tariffs, which went into effect at 12:01 am ET on Thursday, have the potential to upend a crucial American industry and raise the cost of tens of millions of cars sold every year across the country.
Many products are likely to be subject to higher prices due to the tariffs. But none will cost Americans more, or shake as critical an industry as the tax on imported cars that just went into effect or the tariffs on auto parts that are due soon.
America’s economy has evolved over the past half a century – today, it is a service economy, not one built around manufacturing. The United States makes far fewer cars than it once did. But autos are still a key pillar of the US economy, responsible for driving growth and millions of jobs. However, the long-established model of operation and economics of the industry are shaken by these new rules.
Cars are crucial to American’s daily lives: getting to work, going shopping, traveling on vacation. Prices are already near record levels, with a new car costing nearly $50,000 on average. That is likely to go higher in the weeks and months ahead, making it much more difficult for afford the cars they want or need.
The Trump administration placed tariffs of 25% on all cars shipped to America from other countries. Those imports…
