Why Trump's auto tariffs will hurt his working-class supporters

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Why Trump's auto tariffs will hurt his working-class supporters

^{Published on 2025-03-30 08:21:28 - Reuters}

Working-class car buyers will be the hardest hit by U.S. President Donald Trump's 25% tariff on imported vehicles because almost all low-cost new cars sold in the United States are built elsewhere.

The article from Reuters discusses the potential negative impacts of former President Donald Trump's proposed auto tariffs on his working-class supporters. Trump has suggested imposing a 10% tariff on all imported goods and a 100% tariff specifically on imported cars, aiming to protect American manufacturing jobs. However, experts argue that these tariffs could lead to higher prices for consumers, particularly affecting those who can least afford it. The increased costs would likely reduce demand for new vehicles, potentially leading to job losses in the auto industry, which employs many working-class individuals. Additionally, retaliatory tariffs from other countries could harm U.S. auto exports, further impacting American workers. The article highlights that while the intention might be to bolster domestic production, the economic repercussions could disproportionately burden the very demographic Trump aims to support, potentially leading to economic inefficiencies and a decrease in overall consumer welfare.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/why-trumps-auto-tariffs-will-hurt-his-working-class-supporters-2025-03-30/ ]

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