r/WallStreetbetsELITE • u/stresskillingme • 10d ago

MEME How much will Trump's 25% tariffs cost the U.S. automotive sector?

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u/kjbbbreddd 10d ago

This is equivalent to Toyota's products having an additional 25% consumption tax added to their current prices, but do Americans realize it?

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u/looking_good__ 10d ago

https://en.m.wikipedia.org/wiki/List_of_automobiles_manufactured_in_the_United_States

They actually make cars in the US already

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u/Necropaws 10d ago edited 10d ago

You have to look further.

The USA exports around 1.7 million cars and imports around 7.5 million cars per year.

That is a huge deficit and it will take years to build up the manufacturing capabilities to equalize it.

In the meantime the prices for USA produced cars will increase because car sellers will have to import even USA manufactured models as the demand will be higher than the USA supply.

And no one knows what will happen in 4 years when a new president will be sworn in. So it might not make sense to raise manufacturing capabilities in the USA.

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u/Revolutionary_View87 9d ago

You guys are on to something, but you also seem to forget that the parts required to build a car requires a lot of different minerals that I dont think you have a reasonable ammount of. Like, here in Norway we make a lot of money just by exporting aluminium. To get all the required metals and minerals, you need factories and refineries that you probably dont have at the moment. You will suffer for years, and will have to be Lucky to even find it while prospectting for them. Thats just one of the problems you guys are now facing. Also, the wages in other countries where these things are made are even lower, hence why importing is smarter in some cases.. its more to it than just "made in usa", when you actually cant without trading with other countries. You lack so so so much to be able to create everything needed from scratch, and thats just the cars.... No country in the world can and will be able to do this alene unless you capture/annex land with those minerals.. greenland? Ukraine? Hehe. Oh lord... the mess youve made

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u/Mamadeus123456 10d ago

if everyone's charging more Do you not think Toyota would charge more too? it's more money for their pocket

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u/getinshape2022 10d ago

If car manufacturers won’t, dealers will

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u/xJayce77 9d ago

Right. If the gov is increasing the cost of a car by 25% due to tariffs, then competitors who are not impacted by tariffs can increase the cost by 18-20% and still look like a great alternative.

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u/Ina_While1155 10d ago

Only some of them.

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u/Muntt1 10d ago

So all around Honda is the most American car?