There are few, if any, winners in a trade war. Increased costs are passed to consumers. With President Donald Trump imposing tariffs on steel, aluminum, lumber and cars from China, Canada, and Europe, those affected countries and continent are retaliating by imposing their own tariffs. The tit-for-tat battle of economical superiority could mean even more tariffs imposed on both imported and exported U.S. goods. The President has promised another $2 billion of tariffs on Chinese goods that could come later this fall. He’s also promised a 20-percent tariff on import automobiles and auto parts. Companies will have to pass these higher costs to consumers – it’s the cost of doing business.
But that’s not all that could affect prices. The Federal Reserve plans on raising interest rates, which would mean consumers would be paying even more money for a vehicle. The compounding of cost could hurt some people’s chance of buying a new car. Data from Experian, the credit reporting company, shows just how much more consumers may have to pay if President Trump imposes a 25-percent tariff on automobiles and parts. The company breaks down how much more consumers could pay for America’s top 20 selling vehicles.