Saturday, July 11, 2015

A Thousand Cheers for Higher Car Prices?

By Thomas DiLorenzo

I just watched part of Donald Trump’s speech in Phoenix. He said that if an automobile plant were built in northern Mexico, he would impose 35% tariffs on all cars and car parts coming into the U.S. from Mexico.  This would very substantially increase the price of American cars.  The ignorami in the audience cheered wildly for the prospect of paying $5,000 or so more for their next new car should their man Trump become president.

The above originally appeared at


  1. Meanwhile they favor trade sanctions that prevent US made cars from being sold in Iran.

    Yes, there is a market for them there, there was up until the trade sanctions started in 1979.

  2. DiLorenzo isn't looking at the full picture. Yes, a 35% tariff would increase the cost for automobiles in the states but a 35% tariff would certainly deter automakers from building in Mexico in the first place, which is the objective Mr. Trump aims to achieve. This isn't quite as cut and dry as DiLorenzo claims.

    1. Then they'll be made in America and still cost substantially more.