LANSING – President Trump’s 25% tariffs on imported cars took effect on Thursday. The import tax has already triggered big moves by automakers, from layoffs to pauses in car shipments to delayed price hikes.
Then On May 3, the tariff will also apply to imported car parts, such as engines and transmissions, which could add to the cost of cars assembled in the U.S. Auto repair shops use foreign parts so the cost of keeping vehicles on the road also will rise.
Patrick Anderson, chairman of the Anderson Economic Group in Lansing, joined Matt and Mike on MITech TV to provide analysis on what impact all the tariffs will have on the US economy in general and auto industry specifically.
His analysis is very negative.
AEG projects car sales will decline, auto jobs will be lost, inflation will rise, interest rates will rise and Michigan, the center of the auto industry in the US, will be hit very hard.
To read more reports, click on www.andersoneconomicgroup.com.
Watch this video to understand what’s at stake in this trade war.
