Wharton calculates only the negative part of president Trump’s tariff plan. If you buy a foreign made car you will pay the tariff on the part of the cost to the dealer but when the manufacture of the car is re-located to America you will pay no tariff. In addition many foreign countries make their cars far less expensively because their government rigs the game by manipulating the foreign currency so the foreign country benefits while the American buyer loses. Trumps tariff’s are part of a two step process. Charge a tariff to enable foreign made products to be made in America where 2. American competition can lower the American cost thereby lowering the selling price. Beijing is notorious for overcharging and has recently announced they have backed down on tariff’s so Trumps plan is already working.
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