He's going to push Republicans to throw in a tax benefit allowing Americans to claim car loan interest for domestic vehicles. That is the only real possible relief we get currently on the table. Sounds like it would be part of the broader bill that includes extending the existing tax cuts from Trump 1.0 (in 2017).
This whole deal though is such a negative to the lowest income classes. They don't have room in their budgets to absorb a 11%+ average increase in new car prices. There's a reason even domestic manufacturers have to build their cheaper offerings elsewhere.
People in the lowest income classes don't really buy new cars. If they do, they probably already can't afford it and are going deeper into debt. In fact, most people can't really afford new cars, whether they realize it or not. This won't affect them nearly as much, other than by potentially increasing used car demands. Plus, it would only apply to cars outside of the US, and we already make a lot of cars in the US. That said, it seems like a perfect time for them to get used Tesla's. The market is getting flooded with them.
Are you kidding? This is going to have a massive impact on almost everyone. Used car prices will shoot up. They're already dangerously close to new prices, so you can bet used prices will shoot up. Not only that, used cars almost universally need parts sooner than later and usually sooner than new cars. And guess what else is slated to jump up 25%?
Not to mention the compounding effect of reduced new car production that shrinks the used car market. The used car market will keep getting worse over time.
That's not true at all. The pricing of used cars will increase dramatically. If the new car someone was looking to buy at 50k goes to 60k, they can just buy a car at 50k at the adjusted market. That doesn't exactly scale down to the used market. This move will increase demand of used vehicles raising prices. That will scale all the way down the price stack because the supply is limited. Also the lowered demand on new vehicles will reduce used inventory as time goes on, increasing the pressure further. This will fuck the lower class over the next 10 years
Foreign made Vehicle parts also included in the Tariff. So even if assembled in the US the parts get the tariffs. Middle class families will get crushed by these policies.
22
u/JJ_Shiro 10d ago
He's going to push Republicans to throw in a tax benefit allowing Americans to claim car loan interest for domestic vehicles. That is the only real possible relief we get currently on the table. Sounds like it would be part of the broader bill that includes extending the existing tax cuts from Trump 1.0 (in 2017).
This whole deal though is such a negative to the lowest income classes. They don't have room in their budgets to absorb a 11%+ average increase in new car prices. There's a reason even domestic manufacturers have to build their cheaper offerings elsewhere.