Which Automaker Would Be Most Impacted by Trump's Big Border Tax?

Jason Siu
by Jason Siu

A possible import tax on foreign vehicles could seriously affect automakers, but some more than others.

A study conducted by Baum & Associates estimates how much vehicle prices from individual automakers would have to increase if President Donald Trump’s big border tax comes into effect. For Jaguar Land Rover, that cost could be more than $17,000 per vehicle, since the automaker imports all of its vehicles. Ford, however, with many of its models built in the U.S., would have the smallest price increase at $282 per vehicle, while General Motors follows at $995.

Naturally, it wouldn’t make a whole lot of sense if Jaguar Land Rover vehicles suddenly became $17,000 more expensive in the U.S. Automakers aren’t likely to increase their prices by more than a few thousand dollars, and would likely absorb some of the tax burden.

SEE ALSO: BMW Not Threatened by Trump’s Big Border Tax

The study estimates Volvo would have to raise its prices by about $7,600 on average, while Volkswagen would be $6,800.

The big border tax is under consideration as President Trump continues his campaign of creating more American jobs. Some automakers like Ford have already canceled plans of building factories in neighboring countries, although other automakers like BMW aren’t making a move until something becomes definitive.

[Source: Automotive News]

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Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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  • Smartacus Smartacus on Feb 07, 2017

    Some of the cost reduction benefits associated with manufacturing in Mexico; for example, is walked back by the added shipping expense.

  • Jonny_Vancouver Jonny_Vancouver on Feb 27, 2017

    Trump is such a hypocrite. He made his money through consumerism and now he wants to retard it. Somebody in his staff should let him know that there is more money to be made and more jobs will be created when taxes are reduced and global trade is increased. He's such a dinosaur with his archaic business practices, very short sighted. I voted for Trudeau.