Sticker Shock
President Trump is giving the green light to auto industry tariffs.
Wednesday, the White House announced a 25% tariff on imported passenger vehicles, light trucks (think: pickups), and some car parts beginning next week. Economists expect the levies will raise car prices by $4,000-$10,000 as many “American made” cars have foreign parts or are partially assembled in Mexico or Canada.
Trump says the tariffs will make Uncle Sam $100B/year and incentivize companies to do more of the car-building in the U.S., creating jobs. Critics say higher prices will decrease demand, hurting carmakers and forcing layoffs. Auto stocks generally went in reverse (GM -7.8%, Ford -3%, STLA -2.5%, Tesla +2.5%).
Tariff uncertainty and inflation fears are shaking Consumer Confidence. The measure of consumers’ optimism or pessimism about the economic future hit a 12-year low this week.
CHRISTIAN RESPONSE
Regardless of whether the broader economy is struggling or thriving, Christians should seek to give generously of our time, talents, and resources to those in greater need. Reach out to your local church to see where help is needed.
“Don’t neglect to do what is good and to share, for God is pleased with such sacrifices.”
Hebrews 13:16 (CSB) (read full passage)