Trump’s Giant New Car and Truck Tax

He’s dead set on remaking the economy on his import substitution model

WSJ editorial. Excerpts:

"While sales of U.S.-made cars are lower than before the pandemic, that’s because inflation made many unaffordable to middle-class Americans. 

Tariffs will raise car prices even more—as much as $10,000 per car according to Wedbush Securities."

"Mr. Trump’s tariffs seem designed to blow up the USMCA and other trade agreements."

"the average U.S. tariff rate (2.7%) on foreign goods is higher than the average rate in Canada (1.8%), Japan (2%) and Europe (2%), and roughly the same as in Mexico"

"While other countries impose non-tariff barriers, so does the U.S." 

"Mr. Trump wants every car sold in America to be made in America, all 16 million a year. Even if this goal were economically rational, it would take many years and hundreds of billions of dollars in new investment."

"Mr. Trump has an economic development model based on the fantasy of “import substitution.” That model kept India poor for decades."