New tariffs imposed by President Donald Trump on auto parts from China will hit carmaker profits, cut sales and threaten to “start a downward cycle” in the critical industry, analysts said unanimously Tuesday. In addition, if you’re in the market for a new car, you probably should get to a dealership soon, because prices are going up.
“It’s going to be felt by Americans and it’s going to be a big deal,” said Peter Nagle, senior analyst at IHS Markit. “Tariffs are taxes on consumption. Eventually, costs will be passed down to the consumer. This will drive vehicle costs higher. It also includes a lot of body shop equipment.”
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