Research predicts that the new USMCA treaty could add 2.5% to the cost of U.S. non-truck vehicles. (Photo: Shutterstock)
As automakers have ramped up the content of vehicles now manufactured with more safety features, telematics, and other technology, the cost of vehicles has risen. New tariffs put in place by the Trump administration in CY2018 or under review for CY2019 may drive prices even higher. Already, tariffs on aluminum and steel sourced outside the U.S. have led analysts to predict the price of a vehicle may increase by 1%. The Center for Automotive Research predicts the expansion of North American capacity for auto assembly, parts and components manufacturing, and steel and aluminum production, and the higher labor costs in Mexico called for under the newly proposed USMCA treaty may add more than 2.5% to the cost of U.S. non-truck vehicles, and parts and components imports.
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