Michigan Vehicle Prices Could Spike $10K Due To Trump Tariffs

President Donald Trump has expressed his desire to place tariffs on foreign countries for the goods that they import into the United States and the products they purchase from America. In theory this will allow the country to change its tax model from making citizens pay to funding the country through tariffs. This plan seems like a good idea but there is plenty of push back as well.

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Many countries around the world have expressed discomfort with the proposed tariffs from President Trump, which is understandable because there haven't been tariffs for years. As much as the other countries are upset and concerned, the people of the United States are panicked as inflation is already hurting our wallets.

The tariffs are expected to make the price of products and good rise even more and there is still the threat of those countries counter attacking with tariffs on exports to and from America. Michigan is direct neighbors with Canada, and we could see a huge effect in the automotive industry because of it.

Canada and Mexico are large contributors to the car industry in America as many vehicle parts are imported from the two neighboring countries. The tariffs propose a threat to the automotive industry which is currently working to the tune of $300 Billion a year.

The tariffs could cause significant price increases on vehicles in Michigan and all over the country. It's said that average new car which is already almost $50,000 could become $3,000 more expensive and new pickup trucks could see a $10,000 boost. This is a big deal because this changes how vehicle manufacturers work in North America.

At the moment they are using inexpensive steel and other metals from Canada, while taking advantage of the cheap labor in Mexico, and combining it all with the expertise and technology of the United States to tie it together. Now, this whole system may be strained causing a plummet in car sales.

As of now there is just a lot of chaos and rising costs, and it doesn't look like things are trending in the right direction. As of right now, the bottom 20% of Americans can't afford a new car and experts believe the tariffs will push that to the bottom 40%.