Cantwell Decries Trump Auto Tariffs Expected to Spike Vehicle Prices By $5,000 to $15,000
Trump declared today that he’ll impose a 25% tax on imported vehicles & some auto parts starting 4/2; Cantwell: “The Constitution gave Congress this power to set duties and to regulate foreign commerce… It's time for Congress to reassert that authority”
WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Senate Finance Committee, delivered a speech on the Senate floor excoriating President Donald Trump’s announcement that he’ll impose a 25% tariff on all imported vehicles starting on April 2.
“We're going to see the price of cars go up, and the fact that the American public can't afford grocery costs, health care costs, or housing costs – we certainly don't need to add in auto costs,” Sen. Cantwell said. “I'm pretty sure it's a good deal for Elon Musk and Tesla. Don't know that it's such a good deal for everybody else.”
“The framers of the Constitution gave Congress this power to set duties and to regulate foreign commerce. Congress. Commerce, Article One, Section Eight, could not be clearer. It's time for Congress to reassert that authority. We need checks and balances now more than ever. We need to invest in innovation. We need to invest in skilling and training a workforce. We need to invest in modernizing infrastructure and equipment at our factories, and we need to open foreign markets for exports,” she continued. “American business does not need an endless trade war that creates chaos and raises prices on our consumers.”
Following Trump’s announcement today, several Wall Street analysts reported that Tesla – the company owned by Elon Musk – stood to benefit the most, with one analyst calling the company the “clear structural winner” of the new tariff. The “Detroit Big Three” – General Motors, Ford, and Stellantis (formerly Chrysler) – stand to take the hardest hit.
The tariffs could also impact West Coast ports who import automobiles, such as the Port of Vancouver, Wash., which is the largest gateway for Subaru imports in the country. In 2023, 98,000 Subarus came through the Port of Vancouver.
Last week, Sen. Cantwell joined the Washington Council of International Trade for a Q&A session on the whiplash caused by the administration’s chaotic tariff policies – and how they particularly harm the Pacific Northwest, which is among the most trade-dependent regions in the country. Sen. Cantwell said that the current administration’s approach to trade focuses on punitive tariffs, even with America’s largest trading partners and closest allies, as opposed to innovation and alliance-building. That ethos is fundamentally at odds with how the Pacific Northwest has historically built its trade-oriented economy.
READ MORE:
The Columbian: Record number of Subarus came through Port of Vancouver in 2023
In Washington state, two out of every five jobs are tied to trade and trade-related industries. More information on how President Trump’s tariffs on goods from Mexico, Canada, and China will affect consumers and businesses in the State of Washington can be found HERE. Nationwide:
- A 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing in the United States.
- Tariffs on Canada and Mexico could increase U.S. car prices by as much as $15,000.
- According to the Yale Budget Lab, Trump’s proposed tariffs would result in the highest U.S. effective tariff rate in more than 80 years, and depending on the level of retaliation by other trading partners, will result in increased costs of between $1,600 and $2,000 per household. According to their analysis, food, clothing, cars, and electronics will all see above-average price increases.
Sen. Cantwell has remained a steadfast supporter of increased trade to grow the economy and keep prices in check in the State of Washington and nationwide. Sen. Cantwell was the leading voice in negotiations to end India’s 20% retaliatory tariff on American apples, which was imposed in response to tariffs on steel and aluminum and devastated Washington state’s apple exports. India had once been the second-largest export market for American apples, but after President Trump imposed tariffs on steel and aluminum in his first term, India imposed retaliatory tariffs in response and U.S. apple exports plummeted. The impact on Washington apple growers was severe: Apple exports from the state dropped from $120 million in 2017 to less than $1 million by 2023. In September 2023, following several years of Sen. Cantwell’s advocacy, India ended its retaliatory tariffs on apples and pulse crops which was welcome news to the state’s more than 1,400 apple growers and the 68,000-plus workers they support.
For the past two months, President Trump has been sowing economic chaos across the country with unpredictable and ever-changing tariff announcements. His back-and-forth announcements and actions, which have whipsawed American businesses and consumers, as well as close neighbors and allies, include:
- On January 31 -- citing punishment for failing to crack down on fentanyl trafficking -- the Trump administration announced plans to impose a 25% tax on many goods imported into the U.S. from Canada and Mexico and a 10% tax on goods imported from China, then abruptly postponed those tariffs.
- Last month, he doubled down, announcing an additional 25% tax on all steel and aluminum imports.
- At 12:01 a.m. ET on March 4, President Trump’s long-promised 25% tariffs on goods from Mexico and Canada and 10% tariff increase on goods from China took effect, causing stock prices in the United States to plummet.
- Then, on March 5, he announced that automobiles from Canada and Mexico would be exempt from his tariffs for one month.
- The morning of March 6, he announced that he would suspend the tariffs for some products from Mexico. Then, later that same afternoon, he announced he was suspending most new tariffs on products from both Mexico and Canada until April 2.
- On March 11, Trump threatened to double tariffs on Canadian steel and aluminum – increasing them to 50% - before reversing himself later the same day.
- On March 13, he threatened 200% tariffs on alcoholic products from the European Union, including all wine and Champagne.
- Today, he announced plans to impose a 25% tax on all imported sedans, SUVs, crossovers, minivans, cargo vans, and light trucks, as well as some auto parts, beginning on April 2.
Video of Sen. Cantwell’s speech is HERE; audio is HERE; and a transcript is HERE.
###
Next Article Previous Article
