Vehicles cross the American Customs Pavilion on the Ambassador Bridge connecting Windsor, Canada, … [+]
Invoices envisioned by Trump’s management for Canadian and Mexican goods can add $ 4,000 to $ 10,000 to the cost of any car and truck, the AA adviser said on Friday.
‘There will be consumer reaction’, PatrickManaging Director and CEO of Anderson’s Economic Team, he said during a Webinar Automotive Press Association.
“We will see important cuts,” he added. “There will be a significant impact on employment and production” on the North American car industry.
President Donald Trump February 1st 25% applied invoices in Canadian and Mexican goods. Two days later, he stopped invoices for 30 days. On February 11Trump reinstated 25% to steel imports and reinforced aluminum invoices to 25%.
In North America, vehicles and parts are sent to the border, often many times. If 25% invoices in Canada and Mexico come into force, they will be imposed throughout the production process.
“It’s not a sustainable situation,” said Anderson, whose business is based in East Lansing, Michigan. Vehicle and component manufacturers could not absorb the extra costs from invoices, he said.
“Everything here leads to cars that cost the most,” Anderson said.
Production cuts would be greater than the fall of 2023, when United Auto Workers Union fell on strike against General Motors Co., Ford Motor Co. and Stelantis, the consultant said.
“You will see a decrease in domestic car production,” he said.
Consumers, he said, will postpone vehicles. “You will see increased demand for used cars.”
Anderson also passed part of his presentation by discussing the prospects for electric vehicles.
Former President Joseph Biden’s administration promoted the adoption of the UN as a way to reduce greenhouse gas emissions. This led to predictions that the UN could represent 50% or more than US vehicles by 2030.
Anderson consulting company provides that EV sales can reach 21% by 2030. Trump wants to eliminate a $ 7,500 federal tax credit for EV purchases. “If they end the market subsidy, you will see a decrease in EV sales,” the adviser said.
The cost of EV (both for vehicles and for billing) keeps the sales back, Anderson said. Also, one factor, he added, is the lack of charging networks.
In Michigan, Anderson said, “We are far behind the infrastructure charge.”
Anderson bought an EV in 2020. “I can’t get my car in Detroit and back reliably” due to lack of charging stations, he said. East Lansing is about 90 miles from Detroit.
