Auto Tariffs and the Art of Routine Vehicle Maintenance
Peter Zeihan
4 min
The new tariff policy will drive up vehicle costs significantly. The cumulative effect of these tariffs could easily see automobile costs going up by $10,000.
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Donald Trump
Chapters
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0:00
New Tariffs on Cars
Donald Trump initiated a new tariff policy affecting imported cars and parts. Cars made within Canada, Mexico, or the US as NAFTA products get a bypass. The tariff will drive up vehicle costs by about $2,000 or $3,000. Different countries produce different quality parts for vehicles. Japanese cars have high North American content while European cars use imported parts.
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3:07
Cumulative Tariff Impact
Multiple tariffs stack up to increase automobile costs significantly.
Key points
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Donald Trump initiated yet another tariff.
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A new policy imposes a 25% tariff on all imported cars and car parts.
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NAFTA products produced within Canada, Mexico, and the United States get a bypass.
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The tariff will drive up vehicle costs by about $2,000 or $3,000.
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Automotive is unique because everyone produces some of everything.
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German manufacturers make good transmissions while Chinese ones make crap transmissions.
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Japanese automakers like Toyota have a lot of North American content.
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European manufacturing centers in North America use almost 100% imported content from Europe.
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Cumulative tariffs could easily see automobile costs going up by $10,000.
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Additional tariffs on aluminum and steel are already in place.
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Reciprocal tariffs will be announced on April 2nd.
On the map
Who and where
Places · 9
- United States 7
- Europe 4
- Bavaria 1
- South Korea 1
- Mexico 1
- Canada 1
- Japan 1
- Germany 1
- People's Republic of China 1
People · 1
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Donald Trump 3
President of the United States (2017–2021; since 2025)
Photo 1
1. Photo: Daniel Torok, Public domain, via Wikimedia Commons · Wikidata · redrawn in our house style (Donald Trump)
Organisations · 3
- Chevrolet 1
- Ford Motor Company 1
- Toyota 1
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