<ul><li>New U.S. tariffs on automobiles and auto parts may lead to a reduction in consumer purchasing power and spending across the economy.</li><li>The tariffs' impact is expected to be longer lasting than the supply chain shocks experienced during the pandemic.</li><li>The tariffs could raise the cost of vehicles by up to $10,000 or $20,000, impacting consumer real purchasing power and lowering economic output by 0.2 percentage points.</li><li>Efforts to increase domestic manufacturing in the automotive sector would undo the international integration of the industry and may lead to domestically produced cars and parts being priced higher.</li></ul>

Report: New Auto Tariffs Could Impact Consumer Spending Across Economy

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