EconomyLens.com
No Result
View All Result
Thursday, July 3, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

Texans warily eye impact of Trump’s tariffs on their beloved trucks

Andrew Murphy by Andrew Murphy
April 6, 2025
in Economy
Reading Time: 7 mins read
A A
0
28
SHARES
355
VIEWS
Share on FacebookShare on Twitter

President Donald Trump has defended tariffs as a way to bring production back to the United States, but economists say high domestic labor costs will make that challenging. ©AFP

Magnolia (United States) (AFP) – Fearing that US President Donald Trump’s 25 percent tariffs on imported cars and auto parts could spark “paranoia” among buyers and drive up prices, Arthur Bibbs has decided to go ahead and buy a secondhand truck now. “I lost my truck in a storm, and I wanted to buy a vehicle as soon as possible before things get too complicated,” said Bibbs, a 38-year-old Texan who works for an electric company.

Related

South American bloc looks to Asia, Europe in face of Trump trade war

Trump wins major victory as Congress passes flagship bill

US trade deficit widens in May as Trump tariffs fuel uncertainty

Modi pushes further India-Africa cooperation on Ghana visit

Trump close to victory on flagship tax bill

In this vast southern state — where the oil, agriculture, livestock and energy businesses dominate — people love their trucks, whether pickups or SUVs. In Houston, the largest city in Texas and the fourth-largest in the United States, 80 percent of new vehicle purchases are for trucks, according to the Houston Automobile Dealers Association (HADA). Nationwide, the figure is 74 percent, with Ford’s F-Series, Toyota’s RAV4 and Chevrolet’s Silverado leading the category. But none of those vehicles, even those with emblematic American names, are 100 percent “Made in USA.” Most include parts made in Canada or Mexico under terms of past North American agreements now called into question by the trade war launched by Trump.

Even if a car is assembled in the United States with components from other countries, “of course they are going to have to upcharge the prices,” said Tino Ruiz, who owns a dealership in Magnolia, north of Houston. Tariffs — taxes or fees on imports — typically affect the price paid by consumers. The US president has said that by imposing tariffs on cars and car parts he wants to bring production back to his country, but economists say high domestic labor costs and other factors will make that challenging. The tariffs “could undermine the White House’s reshoring goals by rendering final assembly manufacturing in the US prohibitively expensive,” said a paper from the Center for Strategic and International Studies.

– ‘Going to feel that hit’ – RoShelle Salinas, vice president of the Houston Automobile Dealers Association, said that in the short term “we can expect a modest uptick in purchases as price-conscious buyers aim to stay ahead of potential price increases.” She estimated those price rises at $3,000 to $10,000, depending on the vehicle. Since the average new vehicle sold in the United States now costs more than $50,000 — and trucks are even more expensive — “we’re going to feel that hit, no matter what,” Salinas said. “The sentiment here is that all of these tariffs will trickle down to people that buy items,” she said. “That’s going to be you and I.”

Ruiz, the dealership owner, said he might profit from a boost in sales in the short term. But, he said, “Eventually I’m going to have to pay the high price to go purchase another vehicle,” and “I’m going to have to transfer that to the customer.” Bibbs, his first customer of the month, said he decided he had to “get me a vehicle now.” And he wanted an American model — his final choice was a full-size Dodge Ram pickup — figuring the new tariff scheme will keep American-made replacement parts cheaper when it comes time to service his truck. “I did purposely go out on a limb to try and get an American-made vehicle, for those purposes,” he said.

– ‘Make cars better’ – Ruiz said he supports local brands but also sees the value in globalization. He believes competition drives everything and that no one should be forced to buy particular brands — or only American products. “Unfortunately, the American cars, they’re more disposable… You get them to 100,000 miles and you’ve got to get rid of them, they start giving problems,” he said. “You buy a Japanese car — Toyota or Honda — they keep up to 200,000, 300,000 miles.” “So, OK, if you want to do that, then make cars better.”

© 2024 AFP

Tags: automotive industrytariffsUS economy
Share11Tweet7Share2Pin3Send
Previous Post

Stocks savaged as China retaliation to Trump tariffs fans trade war

Next Post

China vows to stay ‘safe and promising land’ for foreign investment

Andrew Murphy

Andrew Murphy

Related Posts

Economy

US hiring beats expectations in June despite tariff worries

July 3, 2025
Economy

US House close to final vote on Trump tax bill

July 3, 2025
Economy

Strike by French air traffic controllers disrupts summer travel

July 3, 2025
Economy

Ethiopia’s mega dam on the Nile ‘now complete’: PM

July 3, 2025
Economy

Strike by French air traffic controllers disrupts summer travel

July 3, 2025
Economy

Japan plans ‘world first’ deep-sea mineral extraction

July 3, 2025
Next Post

China vows to stay 'safe and promising land' for foreign investment

Major garment producer Bangladesh says US buyers halting orders

'Everyone is losing money': Hong Kong investors rattled by market rout

The worst market crashes since 1929

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

72

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Stocks climb as strong US jobs data soothes growth worries

July 3, 2025

Joy riders give Paris bike share system a flat

July 3, 2025

US trade deficit widens in May as Trump tariffs fuel uncertainty

July 3, 2025

Modi pushes further India-Africa cooperation on Ghana visit

July 3, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.