How are Trump's auto parts tariffs affecting the broader economy?

Despite domestic firms being exempt from tariffs, new policies may still impact the price of vehicles manufactured in North America, says an ASU economics expert.

In this article published June 27, 2025, by APM Research Lab:

What we've seen historically is that if you put a tariff on an import, which drives up the cost, domestic firms are all too happy to raise their prices even though they're not paying tariffs to match the price of that import.

— Dennis Hoffman, director of the Center for Competitiveness and Prosperity Research and the Office of the University Economist