That New Land Rover You Have Been Eyeing May Cost You $17K More If Trump Taxes Imports

As Washington mulls a tax on imports, an auto industry study suggests the policy would deliver the sharpest blow to Jaguar Land Rover while giving a leg up to Ford Motor Co. and Tesla Inc.

In what it calls a “thought exercise,” researcher Baum & Associates estimates most automakers would need to raise vehicle prices by thousands of dollars -- more than $17,000 per vehicle in Jaguar Land Rover’s case, which imports all its vehicles -- to recoup higher costs incurred by a proposed border-adjusted tax. Ford, with significant domestic manufacturing, would need to mull the smallest price hike among major automakers, at about $282 per vehicle, followed by General Motors at $995, according to the report.

mre30 - 2/7/2017 10:52:40 AM

+1 Boost

Welcome back to the 1970's - when foreign cars were expensive and people bought American because they were "cheaper" (but not really in real terms).

So much for economic freedom.

knowitall1985 - 2/7/2017 10:54:43 AM

+3 Boost

Not going to happen....Bluster!!

countguy - 2/7/2017 11:28:20 AM

+1 Boost

The used car market will see increased activity and people holding onto their current cars longer, or just paying the extra cash, while the new car market would just drop to low levels until it returns to normal.

Dexter1 - 2/7/2017 3:58:53 PM

+1 Boost

I guess the Chinese automaker will have to take the $17K out of their profit margins if they expect to move any of their LR/JAG vehicles.

TomM - 2/7/2017 5:35:29 PM

+1 Boost

Sorry - but LR/Jag are owned by TATA - a company from India - not China

Having said that - the reality is that Most American cars are similar in reliability to their perceived more reliable competition today. GM and Ford have made great strides in that. Chevy leads ALL competition for JD Power initial quality awards for the last 4 years for instance.

I believe that buyers should at least "try (road test)" AMerican competition before buying a foreign car- I think most will be surprised at just how good the American cars are. (FCA is a foreign maker to me)

Dexter1 - 2/8/2017 2:57:33 PM

0 Boost

I stand corrected, TomM. Thank you.