{"id":111164,"date":"2025-02-26T12:32:05","date_gmt":"2025-02-26T12:32:05","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/experts-sound-the-alarm-on-car-prices-amid-controversial-policy\/"},"modified":"2025-02-26T12:32:05","modified_gmt":"2025-02-26T12:32:05","slug":"experts-sound-the-alarm-on-car-prices-amid-controversial-policy","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=111164","title":{"rendered":"Experts sound the alarm on car prices amid controversial policy"},"content":{"rendered":"


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For about six weeks, from September to October 2023, the United Auto Workers union (UAW) wreaked havoc on the U.S. domestic car industry.\u00a0<\/p>\n

Workers representing each of the “Big Three” Detroit automakers went on strike, demanding more livable wages and other labor benefits in their contracts.<\/p>\n

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Ultimately, the strike proved successful, resulting in a new contract that increased wages and benefits for workers represented by the union, as well as increased wages and added benefits to autoworkers in some nonunion plants of foreign automakers like Honda.<\/p>\n

Although the U.S. auto industry faced a big bill from the fallout following the\u00a0prolonged UAW strike, new research shows that proposed tariffs pose a more significant threat to the industry than any strike could.<\/p>\n

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Ford vehicles for sale at a dealership. An analysis by the Michigan-based Anderson Economic Group shows that trade tariff policies could devastate the American car industry.<\/p>\n

Bloomberg&sol;Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n

Tariffs more damaging than strikes, analysis says<\/h2>\n

According to a report by The Detroit Free Press<\/a>, an analysis by the Michigan-based Anderson Economic Group shows that the risk of punitive trade policies causes much more consequential damage in the long run than any work stoppage can do.<\/p>\n

Patrick Anderson, the CEO of the Anderson Economic Group, noted in a webcast that tariffs would impose noticeably huge costs on American automakers, erasing any ounce of competitiveness.<\/p>\n

“This is why Jim Farley said tariffs could blow a hole in the U.S. auto industry,” Anderson said. “You cannot absorb those costs and continue producing the same products profitably.”<\/p>\n

Anderson was referring to Ford’s CEO\u00a0 (F<\/a><\/strong>) <\/span>, who rang the alarm for the industry in recent remarks.\u00a0\u00a0<\/p>\n

On February 11, Farley appeared at the Wolfe Research Auto, Auto Tech, and Semiconductor Conference and discussed the consequences of the President’s proposed tariffs.<\/p>\n

“So far, what we’re seeing is a lot of cost and a lot of chaos,” he said. “If you look at the tariffs, let’s be real honest, long term, a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen.”<\/p>\n

More Automotive:<\/strong><\/p>\n