As many now understand, President Trump’s tariff plan serves as little more than a tax on consumers, even though the president aims to punish Canada and Mexico, apparently over immigration and drug trafficking. With 25% tariffs on imports from the countries set to go into effect on Tuesday, new research shines light on just what it will mean for consumers trying to buy a new car: Prices on popular vehicles like crossover utility vehicles could rise by at least $4,000 or three times that amount for an electric vehicle. So much for ending inflation.
Tesla, run by President Trump’s right-hand man Elon Musk, may be the least impacted, as it manufactures its cars for U.S. customers domestically. Republicans are not the biggest buyers of EVs, though, so Trump’s base is likely about to see some sticker shock at their local Ford dealership.
The Ford Bronco Sport and Maverick pickup truck, for instance, are both built in Mexico, where tariffs could hit the latter with a price increase of $8,000. High-end SUVs with “significant” content from Mexico would see a nearly $9,000 increase. The research comes from the Anderson Economic Group, an automotive consultancy in Michigan.
China is also being hit with 10% tariffs, and electronics companies, including Acer, have begun announcing their first price hikes. Acer’s most expensive laptop, a $3,000 gaming beast, will soon cost $3,300.
Ford CEO Jim Farley said the tariffs “will blow a hole in the US industry that we have never seen.” If consumers are hurt by more inflation and autoworkers lose their jobs, it does not feel like much of a win. Are truck drivers and blue-collar workers not the people Trump courted to win the presidency? Zero-sum thinking, the idea that Canada winning means America losing, is going to hurt real, everyday people trying to live their lives. And this all comes at a time when the economy has been doing quite well, despite the fear mongering. Why are we doing this?
President Trump and Musk have both admitted that Americans could feel some pain from the tariffs, which automakers hope will end quickly. Canada and Mexico tried averting the tariffs by promising to ramp up border enforcement, but the president does not seem to have been satisfied and has said the measures will go into effect on March 4th.
The saddest part of all of this is that electric vehicles will take another blow that they cannot afford as growth slows and Chinese vehicles continue to take over the world. Despite Musk’s earlier claims that he cared about doing anything to benefit the transition to electric, it seems he cares more about his influence in the White House today—and collecting SpaceX contracts—than the health of the EV industry or his own company. Tesla sales continue to dip in the U.S. and especially in Europe, even as sales of other EVs increase there. However, there is a cynical argument that he is satisfied with reduced subsidies for electric vehicles because Tesla is best positioned to survive against its competitors. It builds most of its parts custom in-house and does not have a manufacturing presence in Canada or Mexico.
It is unclear what might satisfy President Trump and cause tariffs to be lifted. In the meantime, a decent hedge might be stocking up on Cardano, Solana, and other shitcoins, as President Trump indicates he’ll use government revenue to buy them up, perhaps using tariff revenue, for a new strategic reserve, bailing out the crypto industry and his “crypto czar” David Sacks who supported him so feverishly. The moneyed interests will do just fine, while everyone else will have to deal with the pain and suffering.
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