Supreme Court decision and how it will affect the auto industry
The Supreme Court tariff ruling and the auto industry
Even with the Supreme Court’s ruling limiting emergency tariff powers, the auto industry is still operating under significant trade costs.
DETROIT (FOX 2) - Even with the Supreme Court’s ruling limiting emergency tariff powers, the auto industry is still operating under significant trade costs.
Big picture view:
Duties on many imported vehicles and auto parts are also still active, directly affecting production costs for manufacturers. Industry analysts say those tariffs can add hundreds to more than a thousand dollars to the cost of building a single vehicle, but prices may not soar as much as you think.
"The cost of cars has gone up due to the tariffs. They’ve been in effect for a considerable amount of time. Their imports are covered by a trade agreement with Mexico and Canada," said Dr. Marick Masters.
While many vehicles assembled in North America qualify under the U.S.-Mexico-Canada trade agreement, imported components and raw materials are still subject to tariffs, meaning price pressure on automakers and consumers is likely to continue.
The Source: FOX 2 talked with Dr. Marick Masters and used information from previous reporting.
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