Messed-up tariffs are hurting the carmakers they’re meant to help
The current tariff structure in the U.S. is negatively impacting domestic car manufacturers. Despite the benefits of the US-Mexico-Canada Agreement, many North American-made vehicles face higher tariffs than those produced overseas. This situation is leading to a decline in U.S. manufacturing and a shift towards overseas production.
- ▪The U.S. tariff environment is causing higher effective rates on North American-made vehicles compared to those made entirely overseas.
- ▪Automakers have absorbed over $35 billion in tariff costs in the past year, affecting their profitability.
- ▪The complexities of the tariff system are discouraging companies from building supply chains in North America.
Opening excerpt (first ~120 words) tap to expand
Opinion Messed-up tariffs are hurting the carmakers they’re meant to help By E. J. Antoni Published May 26, 2026, 7:39 a.m. ET A Chevrolet dealership in Daly City, Calif., on Feb. 13, 2026. See more of our coverage in your search results. Add The New York Post on Google With gas prices so high, the last thing Americans need are more expensive vehicles. But that’s what’s coming because of our nation’s byzantine tariff structure — one that, without quick reform, will ironically drive manufacturing overseas. America benefited from the first Trump administration negotiating the US-Mexico-Canada Agreement trade deal, which effectively replaced the 1994 North America Free Trade Agreement.
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