Americans could face higher vehicle prices following President Trump’s announcement of potential tariffs on imported autos, according to Capital Economics’ Paul Ashworth.
“Trump’s tariffs could, in the long run, boost domestic investment and production,” Ashworth stated. “But in the shorter term, they will be inflationary as American car makers ramp up their own prices.”
Ashworth warned investors that this situation could “make new vehicles something of a luxury item,” potentially impacting prices in the future.
