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Tariff Uncertainty Taxes the Auto Industry


Published on 2025-02-06 08:21:29 - Wired
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  • For some in the car industry, the uncertainty surrounding a US-border trade war is almost worse than the tariffs themselves. If the tariffs go through, the costs might get passed down to buyers.

The article from WIRED discusses the impact of tariff uncertainty on the automotive industry, particularly focusing on the potential trade war between the U.S. and China. It highlights how the unpredictability of tariffs has led to increased costs and planning difficulties for car manufacturers. The piece details how companies like General Motors and Ford are facing higher expenses due to tariffs on steel and aluminum, which were initially imposed by the Trump administration. These tariffs have not only raised the price of materials but also introduced volatility in supply chain planning. Additionally, the article mentions the potential for retaliatory tariffs from China, which could further complicate the situation by affecting the export of American-made vehicles. The uncertainty has led to a cautious approach in investment and expansion, with companies holding off on major decisions until there is more clarity on trade policies. This situation exemplifies how trade policy can act as an indirect tax on industries, affecting not just the cost of goods but also strategic business decisions.

Read the Full Wired Article at:
[ https://www.wired.com/story/tariff-uncertainty-taxes-the-auto-industry/ ]