Rick DeSilva’s Discussion on Squawk Box Regarding President Trump’s Auto Tariffs
On a recent episode of CNBC’s Squawk Box, Rick DeSilva, the owner of Liberty Subaru, joined the conversation to discuss the implications of President Trump’s proposed 25% auto tariffs.
Impact on New Car Prices
DeSilva began by explaining that the new tariffs would lead to an increase in the cost of new vehicles for American consumers. He cited the example of Subaru, which imports around 70% of its vehicles into the United States. With the proposed tariffs, the cost of these vehicles would rise by an estimated $1,800 to $2,500 per unit.
Effect on Used Car Prices
The discussion then turned to the impact of the tariffs on used car prices. DeSilva noted that used car prices could also be affected due to the ripple effect. With new cars becoming more expensive, some consumers might opt to buy used cars instead. This increased demand for used cars could lead to a rise in prices for these vehicles as well.
Sales Outlook
When asked about the potential sales outlook for the auto industry in light of the tariffs, DeSilva expressed concern. He noted that the increased cost of new vehicles could deter some consumers from making a purchase. However, he also pointed out that the auto industry has historically shown resilience in the face of economic challenges.
Global Implications
The conversation then broadened to discuss the global implications of the tariffs. DeSilva expressed concern that retaliation from other countries could lead to a trade war and further harm the industry. He also noted that the tariffs could make American-made cars less competitive in the global market.
Personal Impact
For the average consumer, the tariffs could mean higher costs for both new and used cars. This could put a strain on household budgets and potentially delay car purchases.
Global Impact
On a global scale, the tariffs could lead to increased tensions between the United States and its trading partners. This could potentially disrupt global supply chains and lead to a slowdown in economic growth.
Conclusion
In conclusion, Rick DeSilva’s discussion on Squawk Box provided valuable insight into the potential impact of President Trump’s auto tariffs. With increased costs for new and used cars, potential sales declines, and global trade tensions, the auto industry could be in for a challenging period.
- New car prices could rise by an estimated $1,800 to $2,500 per unit.
- Used car prices could also increase due to increased demand.
- Sales outlook could be negatively impacted as some consumers delay purchases.
- Global trade tensions could disrupt supply chains and lead to economic slowdown.
