How will trade tariffs affect my car Part 1

Not too long ago the United States Government proposed a 25% tariff on imported auto parts. The general idea behind these tariffs is to encourage domestic automakers to manufacture their parts in the United States, and encourage foreign automakers to build plants in the United States to create jobs. While we’re still unsure if this tariff will actually happen, both car and parts manufacturers believe tariffs could cause huge changes in pricing in the “short run” both for new cars and for general automotive repairs on the ones you already own – even for domestics. But why would the impact effect everyone?

“American Car” is a Loose Term

You may be thinking “I drive a Chevy/Buick/Ford/Dodge, etc., those are American, why would their parts cost more?” Simply put, because there is no such thing as a 100% American Car. According to Cars.com, 2017’s most American made vehicle was the 2017 Jeep Wrangler, and it was only 74% domestic – which means that more than quarter of the vehicle’s parts or labor involved in the build came from elsewhere. Another example is General Motors. GM is distinctly American, but not everything they sell is. Ever since their acquisition of Daewoo and renaming it GM Korea, General Motors has built a slew of vehicles overseas and imported them to the States. The Chevrolet Spark EV, for example, is built in Changwon, South Korea and uses minimal American parts, despite being a product of the Detroit automaker. Many sedans that Chevy sells are just rebadged Holden vehicles, an Australian automaker GM owns.

Almost every vehicle on the street, American or not, uses some American and some foreign parts.

If you have any questions about auto repairs, pricing, and general automotive issues, feel free to call Manchester Auto and Tire of Mint Hill at 704-545-4597.