Donald Trump explained the war to the foreign car industry. In the future, 25 percent will be opened for imported vehicles, making it more unattractive on the American market. Trump’s “special” Elon Musk also benefits from this – but less than expected.
When Donald Trump announced the controversial special rates against foreign car industries in the Oval Office, he had to order uncomfortable questions from the journalists present. One thing was: “Did she advise Elon Musk about this decision?”
Trump denied: “We may have a conflict. I have never talked to him about it. Elon is incredible. He never asked me for an economic favor. I was actually a bit surprised. I would do that, maybe not.”
Trump has already helped Musk
The South African billionaire is a “patriot”, the American president enthusiastic. His statements are in a strong contrast with his actual actions. Trump recently converted the White House into a Tesla car trade. To stimulate the sale of the affected company, the Republican Musk bought an electric car for running cameras. “I love Tesla,” he cried.
Implementation caused violent criticism because millions of Americans suffer from galloping inflation. The new customs policy will probably sharpen their suffering. Trump’s strategy is intended to ensure that the largest car manufacturers in the world work open in the United States. Until such an infrastructure is created, prices continue to go through the ceiling.
Can Trump’s plan open?
Domestic brands such as Tesla must now benefit in the United States. However, Trump’s politics is partly in the way here. Since the US President also wants to increase rates on car parts from April, vehicles produced in the US will probably also rise in price. There is no longer such a thing as a “pure American car”. Important components come from Canada and Mexico. After his announcement, the shares of General Motors rustled in the basement.
According to the “Anderson Economic Group”, a think tank based in Michigan, the estimates on the effects of rates on American production costs are sufficient, depending on the model of $ 35,000 or more per vehicle.
Musk, who benefits from the state contracts of billion dollars and has an enormous influence on budget decisions in the United States in his role as a quasi-side case, tried to fade unfair influence in an initial reaction. The special rates also have “significant” effects on Tesla. “It is important to note that Tesla will not get away with it,” he wrote in a message about X.
A car that is produced in Europe becomes much more expensive for the end consumers in relation to its electric cars. If taxes are fully passed on to the Americans, the average price for an imported vehicle can rise by $ 12,500. That should continue to stimulate inflation. As a reminder: Trump was voted for the White House last year because the voters believed that he could lower prices …
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
