The Auto Industry in America is in trouble, big trouble, and this is serious for consumers and even those who are the ones who make it happen (more specifically the auto workers in the assembly lines).

As of recent, our current president Donald Trump has made an alarming decision on his behalf that impact the Automotive industry in America as we know it, with his decision to put tariffs on goods that are produced in other countries like China and other large exporters of goods. But the 2 biggest countries that currently supply auto parts and cars are Mexico and Canada, which you’ll hear a lot about as you read through the article, more on that later. This decision was in response to “the extraordinary threat posed by illegal aliens and drugs,”  which seems reasonable until it isn’t considering that not only the auto industry is going to suffer from it, but also because he has a weird obsession with being #1 as far as manufacturing goods and everything else trying to surpass China. Currently sitting at #1, because of this not only will the auto industry suffer, but other major businesses will too.

 The tariff that was put in place as mentioned previously will impact the prices on car parts from foreign countries, primarily Mexico and Canada, which means car prices will soar to all-time highs as some estimates say the tariffs with Canada and Mexico will make car prices cost thousands over the sticker price, which is a huge turnoff to customers in the market for a new car. Even components made in different countries are affected, for example a single piston to an engine is made from raw aluminum made here in America. However it doesn’t end there, as it’s then sent to canada to be cast and then it makes its second to last stop in Mexico where it is refined and finished, and then it comes back to America where piston rings and a connecting rod are attached to it, and it can finally be put into an engine. The engine in question once it’s completed, goes back to Canada to be put into a vehicle being built there (for example a Ford Maverick or Chevy Silverado), then once said vehicle rolls off the assembly line, it then makes its way down to the US again, to a random authorized dealer selected at random to be sold, there where it will eventually find itself a new home. With this tariff put in place, this process will become significantly more expensive. considering the materials and where it comes from and where it is assembled. 

Percentage of automotive goods/cars made in certain countries:

Auto parts:

1. Mexico – 40.4 Percent
2. Canada – 10.3 Percent

Vehicles sold in US from other countries:

1. Mexico – 21.4 Percent
2. Japan – 19.4 Percent
3. Canada – 16.6 Percent
4. South Korea – 14.9 Percent
5. Germany – 11.3 Percent

On the topic of vehicles currently being sold in the US, Ford imports the least number of vehicles from foreign countries while Mazda, VW and Mercedes-Benz are the largest importers, as their vehicles are most commonly made overseas in different parts of the world. CEO of Ford Motor Company Jim Farley stated recently “There’s no question that tariffs at the 25 percent level with Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profit wiped out, and adverse effects on US jobs as well as the entire value system in our industry,” with him adding another key factor—”Tariffs would also mean higher prices for customers.” But most importantly, here, many jobs might be cut leaving union workers without a job due to the soon to be high costs of parts, production and vehicles as the finished product. This means that the market and the industry is in trouble. Remember the vehicle markups of a few years back where some vehicles had outrageous markups? It’s bound to happen again, as some experts predict that vehicle prices can rise anywhere from $4,000 to as high as $12,000 over their original MSRP, think about how much more an import car is going to cost like a Mercedes E-class or even a new Lamborghini.

Gallery • 2 Photos

the infamous $96,000 Toyota Rav4 from 2022

As seen in the photo gallery above, is a picture of a brand new Rav4 Prime in a Toyota showroom in California with a $96,000 asking price with a $40,000 dealer added markup, which is absolutely ridiculous for a car that already cost $49,000 (for the XSE Prime version as seen in the picture above). These pictures were shared to Reddit, and instantly went viral online as other people were actively searching for the most outrageous markups they could find. One user found a brand new Subaru WRX for sale at Raridon’s Subaru in Auburn with a $7,000 markup. It isn’t that extreme compared to when one user found a then brand new Mercedes-AMG GT Black Series with an original MSRP of $325,000, along with a $150,000 markup making it cost $475,000. The point is that we might soon enter this reality once again, as cars now are already expensive enough with the average new car costing $50,000, we definitely don’t want to add to that number.

With this being said, many jobs are at risk as consumers currently in the market for a new vehicle may be forced to find better alternatives such as buying a used vehicle. With this new tariff put in place with the idea in mind to restore the supremacy the United States once was, might not be the smartest choice, as this will affect many people who thrive off foreign goods like large automakers. But more importantly, the millions of small businesses and others who need these foreign goods to do business will be affected with this tariff in place, and I’m afraid that this might delay some long awaited new cars that have yet to be released yet. But most importantly, we need to worry about not only the auto industry but also standard goods that get imported here to the US like avocados for example that come from Mexico, with this in place I’m not sure how long this will go for, but this will affect us all in some way.

List of vehicles currently being sold in America built in Mexico and Canada:

Mexico:

1. BMW 2-Series Coupe/Convertible

   

2. BMW M2 Coupe
3. BMW 3-Series Sedan
4. Ford Bronco Sport
5. Ford Maverick
6. Ford Mustang Mach-E
7. Chevrolet Blazer
8. Chevrolet Blazer EV
9. Chevrolet Equinox
10. Chevrolet Equinox EV
11. GMC Terrain
12. Honda HR-V
13. Honda Prologue

    

14. Acurda ADX
15. Hyundai Tucson
16. Kia K4
17. Mercedes-Benz GLB
18. Mazda3
19. Mazda CX-30
20. Infiniti QX50
21. Infiniti QX55
22. Nissan Sentra
23. Nissan Kicks
24. Nissan Versa

    

25. Ram 2500-5500
26. Ram ProMaster
27. Jeep Compass
28. Toyota Tacoma
29. Audi Q5/SQ5]
30. VW Jetta
31. VW Taos
32. VW Tiguan

Canada:

1. Ford Mustang GTD

   

2. Honda CR-V Hybrid
3. Honda Civic Sedan
4. Chrysler Pacifica
5. Toyota RAV4/RAV4 Hybrid
6. Lexus NX
7. Lexus RX