Tariffs = Taxs

A tax that is paid by ultimately the consumers of a product.

This “tax” is collected by the local government from local importers. Importers pass the costs of this tax on to local consumers. Other countries do not pay the “hard costs”.

Didn’t Ford just say that there wouldn’t be “significant price hikes”?

Ford CFO Sherry House told reporters that it expects US car prices to edge up 1% to 1.5% in the second half of 2025 as a result of tariffs on both imported cars and auto parts. The announcement came as part of Ford’s first-quarter earnings report, which showed a sharp drop in profits.

But today:

Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers reviewed by Reuters.

In case you were wondering, 1.5% of the ~$30K price of a Maverick is $450. $2000 is ~6.7% of $30K. Ford understated their tariff-induced price hike by more than four times.