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Study: Auto Tariffs Could Cause Sticker Shock

Published 26/07/2018, 15:41
Updated 26/07/2018, 15:41


Investing.com - If the Trump Administration proceeds with a 25% tariff on autos and auto parts on top of existing steel and aluminum tariffs, vehicle prices will rise an average of $1,400 to $7,300 for the top-selling models, according to a new study.
A study by the Peterson Institute for International Economics says prices will rise regardless of whether the vehicle is imported or made in the U.S. because all cars contain some foreign content.
Here's a look at some of 2017's top-selling compact vehicles and their estimated price increase, if manufacturers pass along 100% of the tariff.
The Honda Civic, with sales of almost 378,000 last year, will cost $1,700 more because 40% of its content is foreign based.
The Toyota RAV 4 crossover SUV has 65% foreign content. It's price will rise about $3,400.
The Lexus NX luxury crossover SUV is almost all foreign content, which would mean a price increase of $7,300.

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