The impact of U.S. President Donald Trump's proposed 25 percent tariff on imported cars and auto parts is raising concerns globally. While Trump claimed tariffs would boost U.S.-made car sales, economists are skeptical. Liang Yan from Willamette University says U.S. consumers will bear tariff-induced price hikes, saying "any car could be up to $10,000." Besides, she said tariffs won't spur carmakers to expand production or cut prices because it's not in the business logic. Plus, without major infrastructure and workforce investment, the tariff is a "terrible tool" to accomplish re-industrialization.
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