Trump's Tariffs Explained: Potential Impact On Pricing For Cars, Electronics And More

In a claimed bid to hold China, Mexico, and Canada accountable for "halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country" (per a White House fact sheet), President Donald Trump was made to impose the IEEPA on some of its largest trading partners. China imports will see a 10% tariff, while Canada and Mexico will face a stiffer 25% tariff (aside from energy products from Canada, which will be subjected to a 10% tariff). Note: Tariffs are taxes on imported goods from another country.
Following the tariff announcement, John Murphy, U.S. Chamber of Commerce Senior Vice President and Head of International, warned of negative effects for consumer and supply chains. Murphy said, "The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains."
Mike Wall, executive director for automotive analysis at S&P Global Mobility, said that consumers will see tighter vehicle inventories plus dealers offering less incentives or deals. Wall emphasizes how "a 25% tariff is just massive in this industry.”
While Trump believes that something like the IEEPA can aid in trade/political negotiations, the fact that Canada and Mexico have so far threatened retaliation by way of tariffs on the U.S., citizens and consumers could be in this for the long haul. We could very well be seeing something similar to the economic and supply effects of Covid shutdown (plus tariffs imposed during Trump's first term), although there are signs that some manufacturers have adapted their business models based on that experience.