Economist honored by Trump who invented ‘Laffer curve’ warns 25% tariffs on autos could add $4,711 to the cost of a vehicle

Quick Summary:

"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," Arthur Laffer wrote.

The analysis says that the per vehicle cost without the USMCA exemption would be $4,711, but that figure would be a lower $2,765 if the exemptions were sustained.

Trump maintains that 25% tariffs will cause more foreign and domestic automakers to expand production and open new factories in the United States.

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Article Details

Author / Journalist: Josh Boak

Category: EconomyBusiness

Markets: United States

Topics: Tariffs and trade Donald Trump Tariffs Economists Economics

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-28 @ 10:04:12 (3 days ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 657 words

Reading Time: 4 minutes read

Sentences: 4 lines

Sentence Length: 165 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 27382550

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Official Website: fortune.com

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