The US will append a 25 percent tariff on top of any existing tariffs on all cars produced outside its borders. Additional fees will be imposed on imported components too like engines, transmissions, powertrains and electrical components. There’s a number of carve outs for US-based companies, as well as those sourcing gear from Mexico and Canada. But the move has been taken under the guise of “protecting” America’s car industry from imports.
Of course, hefty tariffs are no guarantee consumers will flock to buy American if other brands are pricier. We’ve been here before: The ’70s oil shock meant bulky and inefficient American cars were suddenly money pits. That made light and efficient Japanese cars far more attractive to buyers who didn’t want to go broke at the gas pump. And that was despite a tariff regime that, as PBS reported in 2017, was equivalent to a 60 percent levy. Before 1980, Chrysler, GM and Ford were kings — now they muscle with Toyota, Honda and Hyundai for a slice of the pie.
Given the new administration’s work to undermine the EV transition, it’s likely we’ll see a big pivot back to gas-powered vehicles. Especially as the one EV company likely to benefit from such a move has potentially diminished its reputation in the eyes of some buyers. The end result, however, may likely erode any sort of advantage the US auto industry has, allowing China the chance to race ahead in the rest of the world.
— Dan Cooper
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The biggest tech stories you missed
The Pentagon warns government officials that Signal is being targeted by Russian hackers
I’m not sure why we should worry, it’s not as if government officials are secretly using Signal to agree war plans, are they?! Sorry… what’s that?
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Better charge up that Terrain Manipulator.
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Nobody involved in this law has ever put their thumb on a TouchID sensor to allow an app to download because their kid hasn’t shut up about something for three hours.
Plus, it’s cheap.
Jeff Dunn for Engadget
Engadget’s Jeff Dunn has put the new 2025 base-model iPad through its paces, and it comes with no surprises. The new slate gets a faster chip, A16, and 2GB more ram than its immediate predecessor. Naturally, compared to the pricier iPads, its performance isn’t going to pull up too many trees, but you’re not using a base model iPad for intensive work. Plus, it’s not going to get any Apple Intelligence features, which I’ll take any day of the week and twice on Sundays.
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It’s a tank parked on Sony’s lawn.
Steve Dent for Engadget
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It has more than 10,000 staff members.
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When the tedious bores moaned Twitter was overstaffed, I knew they were talking out of their backsides. After all, a global social network needs bodies to keep the site running, engage with advertisers and moderate such a sprawling platform. And while most financial institutions need plenty of qualified folks to comply with financial laws — not that Block has a stellar record in that area — 10,000 people to run Square and Cash App seems like a lot.
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I’m sure Gamestop buyers would love to bank with Robinhood.
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This article originally appeared on Engadget at https://www.engadget.com/general/the-morning-after-will-the-us-imported-car-tariffs-work-112509770.html?src=rss
