Pickup Buyers May Be The Real Reason Trump Backed Down On Tariffs

  • The rise in pickup truck prices may have influenced the decision to pause tariffs.
  • Pickup owners are twice as likely to identify as Republicans over Democrats.
  • Analysts say vehicles made in Mexico or Canada could cost $7,000 more on average.

Earlier this week, President Donald Trump announced that auto-related tariffs on Mexican and Canadian imports would be postponed until April. This is the second time the US president has moved the goalposts, and the latest change came only a day after touting how America’s big three automakers were “excited” about the incoming 25 percent levies.

Read: These 47 Cars Made In Canada And Mexico Could See Major Price Hikes

The official explanation as to why the automotive tariff can was being kicked down the road is that the same automakers, namely Ford, Stellantis and GM, had requested the extension. “We spoke with the big three auto dealers. We are going to give a one-month exemption on any autos coming through the U.S.-Mexico-Canada Agreement,” said White House spokesperson Karoline Leavitt.

Why the Delay?

While it’s really no surprise that US automakers aren’t exactly thrilled with the idea, considering many of their models are made across the border, one of the biggest reasons why Trump caved in may be down to one particular type of vehicle: pickups.

So says a report from Reuters, suggesting the decision to pause the tariffs may be down to trucks being popular with Republican voters. According to a study by Edmunds, pickup owners are twice as likely to say they’re Republicans than Democrats.

Pickup Buyers May Be The Real Reason Trump Backed Down On Tariffs

The Pickup Factor

As it stands, a 25 percent tariff on vehicle imports would potentially see price hikes for some of America’s most popular trucks, including the Chevrolet Silverado and Silverado HD, GMC Sierra, Ford Maverick, and Ram 2500, 3500, 4500, and 5500, all of which are manufactured in either Canada or Mexico. It’s not just domestic-branded pickups that would be on the receiving end, either, as Toyota makes the Tacoma in Mexico.

While the impact of the proposed tariffs will largely vary from one manufacturer to another, data suggests that immediate impact to consumers would be an average price hike of $3,000, while vehicles made in Mexico or Canada would see around $7,000 added on top.

The Bigger Picture: Tariffs Aren’t Just About Cars

It’s not just cars and trucks made over the border that would be impacted either, as virtually no vehicle in the US is made entirely of locally sourced parts. Components such as engines, transmissions, and various other crucial elements for US-made cars are often produced in neighboring countries. “A tariff over Mexico, in this particular case, or over Canada, is going to mean hundreds of millions of dollars as an impact” on the industry overall, said transmission maker ZF’s North America President Ramiro Gutierrez.

Pickup Buyers May Be The Real Reason Trump Backed Down On Tariffs

The Auto World

Comments

Post a Comment

Popular posts from this blog

Gearhead Nirvana: We Visit Porsche’s Atlanta Workshop Where Classics Get Reborn

Image
Maintaining any car is a duty that different owners approach in vastly different ways. For some, a few zip ties and a rattle can of spray paint is good enough. Far on the other end of the spectrum are owners like the ones who take their car to the Porsche Classic Center in Atlanta. During our trip there to see the new Macan EV in virtual reality , we had the opportunity to tour the Classic Center as it was deep in the midst of multiple repair and restoration projects.  To the owners of these cars and to the Porsche brand itself, what these mechanics, technicians, upholsterers, and painters are preserving is heritage. The center’s mantra “As good as new. But with even more character” is on display for anyone who visits the site. More: 2024 Porsche Macan EV Arrives From $79k, Turbo Is Faster Than A 911 GT3 Directly south of downtown Atlanta and appropriately located at 300 Porsche Ave, the Porsche Classic Center is now a separate building from the main Experience Center that o...
Read more

US Drops $100 Million To Boost Domestic EV Parts Production

Image
Vice President Kamala Harris is in Detroit today, announcing $100 million in funding to help suppliers prepare to make parts for EVs. The White House says that the money will keep good-paying, union manufacturing jobs in the country. The funding will come from the Department of Energy as part of the Inflation Reduction Act and the Bipartisan Infrastructure Law. As part of the Vice President’s Economic Opportunity Tour, Kamala Harris has announced that the White House will free up $100 million in funding to help small- and medium-size auto parts manufacturers prepare to produce components for electric vehicles. Half of the funds will come from the Department of Energy’s Automotive Conversion Grants Program to help suppliers shift from manufacturing parts for internal combustion vehicles to EVs. The other half of the funding comes from the department’s Implementation Grants Program to help suppliers “kickstart manufacturing diversification and conversion projects.” Read: ...
Read more

The New Honda Prelude Will Be A Global Model, But It Won’t Be A Toyota GR 86

Image
Last month, Honda rolled out the red carpet for the the hybrid Prelude Concept , heralding the comeback of a historic name in the motoring world. Now, this car has been given the green light as a global model, set to cater to both right- and left-hand drive markets. However, it might not quite rev up to be the full-throttle sports car many enthusiasts were anticipating Despite being labeled a concept by Honda, the car presented at the Japan Mobility Show (JMS) looked quite production-ready. And if we know anything about Honda, they have a knack for unveiling thinly-disguised production cars as concepts. Take the last two Civics, for example. The 10th-gen Civic Concept was more or less the Civic coupe of that generation with a more aggressive stance and altered bumpers, while the 11th-gen Civic Prototype was virtually the same sedan that made it to production. Read More: The Honda Prelude Is Coming Back As A Hybrid Sports Coupe advertisement scroll to continue Honda Pre...
Read more