A TikTok creator recently shared a video explaining why car manufacturers are supposedly worried about President-elect Donald Trump’s proposed tariffs and how they could impact the wallets of everyday Americans.
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Aaron Parnas (@aaronparnas1), a news-focused TikTok creator, shared a video that has garnered over 315,700 views, detailing how these tariffs might significantly raise the cost of cars, both for manufacturers and consumers.
How could the proposed tariffs impact the auto market?
“Car companies are sounding the alarms right now over Donald Trump’s proposed tariffs,” Parnas begins. “Because it would increase manufacturing costs for the car and thereby increase costs on you.”
He uses the popular Ford F-150 as an example, noting its reputation as an “all-made-in-America” vehicle.
However, he points out that “only 32% of the parts that go to a Ford F-150 are actually made in the United States or Canada.” For the electric vehicle (EV) version of the truck, that percentage drops to just 24%, Parnas alleges.
Parnas explains that imposing tariffs on parts and materials sourced from other countries would force car manufacturers like Ford to shoulder higher costs, which would ultimately be passed on to consumers.
“It’s going to raise costs on them, it’s going to raise costs on you, going to raise costs on the car,” he says.
Beyond just cars, Parnas warns about the broader implications for the economy, particularly given the post-pandemic challenges in the auto market.
“If you know anything about the car market post-2020, post-COVID, it’s that it’s not great, right? It’s expensive to buy a used car, it’s expensive to buy a car generally,” he says. “And tariffs are only going to make it more expensive.”
What are Trump’s proposed tariffs?
Trump has proposed imposing a universal tariff of 10% to 20% on all imports, with additional tariffs ranging from 60% to 100% specifically targeting goods from China.
As NBC New York previously reported, this policy aims to encourage domestic manufacturing and reduce reliance on foreign products.
However, economists warn that such tariffs could lead to increased prices for consumers, as importers often pass the added costs onto buyers. For example, the National Retail Federation notes that these tariffs would affect a wide range of consumer goods, including apparel, toys, furniture, household appliances, footwear, and travel items.
In the automotive sector, just as Paranas reported, industry experts express concern that the proposed tariffs could disrupt supply chains and significantly raise vehicle prices.
John McElroy, an automotive analyst, told Newsweek that if Trump “follows through on his threat to level higher tariffs on all imported vehicles and components, it will wreak havoc in the auto industry, and will do severe financial damage to automakers, suppliers and car dealers in the U.S.”
Is the Ford F-150 made in America?
Yes, but as the Drive points out, “made in America” does not mean that all parts are American. As the Drive further notes, 50% of the F-150’s parts come from North America… but that includes Canada, a nation also in the crosshairs of Trump’s tariffs.
So more like “assembled in America.”
According to Ford Authority, 65% of the Ford F-150 is “made in America.” The publisher was citing the annual Kogod School of Business Made in America Auto Index. The truck ranks No. 17 on a list that looks at four ranking factors: “the percentage of content that exclusively comes from the U.S. or Canada, the engine and transmission, the source of each of those components, and the location of assembly.”
Viewers react
In the comments, users expressed frustration over why these car companies didn’t didn’t speak out sooner. Others were surprised at the allegation toward Ford.
“Still confused as to why all these business leaders would sound an alarm after the election?” remarked one user.
“So Ford is lying by saying ‘Made in America,’” criticized another.
“We just got our new car last week because of this,” shared a third.
@aaronparnas1
12/7
♬ original sound – Aaron Parnas
The Daily Dot has reached out to Parnas via email and Instagram direct message. We’ve also contacted Ford via email.
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Publish date : 2024-12-10 06:00:00
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