An aerial view shows auto dealerships in Cerritos, Calif., Thursday, March 27, 2025. (AP Photo/Jae C. Hong)
Noted economist honored by Trump warns that 25% tariffs risk ‘irreparable damage’ to US automakers
By JOSH BOAKUpdated 10:17 PM CDT, March 27, 2025
WASHINGTON (AP) — Noted economist Arthur Laffer warns in a new analysis that President Donald Trump’s 25% tariffs on auto imports could add $4,711 to the cost of a vehicle, adding that the proposed taxes could weaken the ability of U.S. automakers to compete with their foreign counterparts.
In the 21-page analysis obtained by The Associated Press, Laffer, whom Trump awarded the Presidential Medal of Freedom in 2019 for his contributions to economics, says the auto industry would be in a better position if the president preserved the supply chain rules with Canada and Mexico from his own 2019 USMCA trade pact.
The White House has temporarily exempted auto and parts imports under the USMCA from the tariffs starting on April 3 so that the Trump administration can put together a process for taxing non-U.S. content in vehicles and parts that fall under the agreement.
“Without this exemption, the proposed tariff risks causing irreparable damage to the industry, contradicting the administration’s goals of strengthening U.S. manufacturing and economic stability,” Laffer writes in the analysis. “A 25% tariff would not only shrink, or possibly eliminate, profit margins for U.S. manufacturers but also weaken their ability to compete with international rivals.” ...
READ THE FULL STORY - AP
Trump executive order on Smithsonian targets funding for programs with 'improper ideology'
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Trump privately vents his frustration about Michael Waltz
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www.usatoday.com
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www.usatoday.com
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www.nbcnews.com
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www.usatoday.com
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How will carmakers be affected by Trump's tariffs?
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www.bbc.com
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White House says Yemen strikes chat wasn't classified. It could still be illegal.
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www.usatoday.com
Iowa lawsuit says sheriff discouraged compliance with immigration law
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www.usatoday.com
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Trump announces 25% auto tariffs | The Excerpt
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www.usatoday.com
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www.cnn.com
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www.usatoday.com
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Belgium bar owners arrested over drink spikings and assaults of dozens of women
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www.bbc.com
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www.cnn.com
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apnews.com
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apnews.com
Venezuelans deported to El Salvador prison 'trapped in nightmare'
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www.bbc.comNEWS FROM THE HILL:
