A 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes.

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The US president has said the new tariff, along with a 25% import tax on cars that went into effect last month, is intended to push carmakers to do more manufacturing in the US.

But analysts said any immediate expansions in the US were likely to come at the expense of production elsewhere, while also leading to higher costs for the businesses – and ultimately higher prices for customers.

“American made” cars still rely on foreign-made parts — we’re screwed by these tariffs either way.

Tariffs on car parts entering the US come into force

https://www.msn.com/en-us/money/markets/tariffs-on-car-parts-entering-the-us-come-into-force/ar-AA1E5k8b

More here:

The White House says tariffs won’t make car buying more expensive. Top automakers don’t sound as sure.

Despite the White House’s statements, Ford’s top executive recently said he could not promise consumers wouldn’t pay more.

https://www.msn.com/en-us/news/other/the-white-house-says-tariffs-won-t-make-car-buying-more-expensive-top-automakers-don-t-sound-as-sure/ar-AA1E3BLQ