[Source/Observer Network, Pan Yuchen, Liu Huaizhong, Editor Gao Xin] According to a report by Reuters, the automotive consulting company Telemetry predicts that if the global trade war escalates, US and Canadian auto sales will decrease by about 1.8 million vehicles this year and remain stagnant over the next decade.
Telemetry stated that if current tariff policies persist until 2035, auto sales in the US and Canada will be approximately 7 million fewer than the 24.6 million units expected in a scenario without trade conflicts and with strong economic growth.
"Vehicle affordability is becoming a major issue for consumers," said Sam Abuelsamid, vice president of Telemetry. "Currently, the average price of new cars is nearing $50,000 (approximately RMB 360,000), and since 2020, interest rates on car loans have also increased."
Reuters cited analysts' predictions that Trump's auto tariff policy would increase car prices by thousands of dollars, and automakers have issued similar warnings.
In addition, automakers have adjusted their production plans due to tariff policies; a General Motors plant in Indiana has increased its capacity, while Stellantis temporarily shut down two factories in Mexico and Canada.
"As sales decline, companies will lay off workers," Sam said, noting that even if some production processes are relocated to the US, it will not be enough to offset the losses caused by rising costs and declining sales.
Emden Port, Germany, cars destined for the US Reuters
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