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President Trump announced a one-month tariff exemption for American automakers General Motors (GM), Ford (F), and Stellantis (STLA) — known as the Big Three — on Wednesday.
Anderson Economic Group CEO and principal Patrick Anderson joins Market Domination to explain the sensitivity surrounding the American auto industry.
"This underlines again just how important the auto industry is to both the United States and Canada, and also the extreme sensitivity and the appropriate sensitivity of the American president to potential job losses, income losses, and very negative consumer reaction to tariffs — particularly in heartland states like Michigan, Ohio, Indiana, Texas, as well as provinces like Ontario," Anderson says.
Anderson emphasizes the calculations involved in this decision, believing that the administration has been paying attention to what these policy shifts would mean for price hikes in cars: "The fact is that American consumers are not going to be happy about paying $5,000 more for a car."
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The new tariffs imposed by the US is being forecasted to raise the price of new cars and trucks by as much as $12,000.
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This post was written by Josh Lynch