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Messed-up tariffs are hurting the carmakers they’re meant to help

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26.05.2026

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Messed-up tariffs are hurting the carmakers they’re meant to help

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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.

USMCA reduced trade barriers, strengthened North American supply chains, created more domestic manufacturing jobs, supported wage growth and resulted in economic transactions valued at almost $2 trillion a year.

The new trade agreement was called the “gold standard” by Trump administration officials, industry groups and senators who overwhelmingly voted to ratify the deal on a bipartisan basis.

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But the luster of that gold standard is being dulled by today’s tariff environment.

This is perhaps most apparent in the auto industry — where, shockingly, many vehicles made in North America in compliance with USMCA rules now face higher effective tariff rates than those made entirely overseas with all foreign parts.

After the Supreme Court ruled against the imposition of tariffs based........

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