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According to Cars.com, America imports roughly half the cars it buys 47%, to be exact.
GOBankingRates talked to professionals who earn their living in the international shipping and automotive industries to find out how.
Also see what eliminated income taxes might do for the economy in general.
Firstly, consumers would have more disposable income, potentially increasing demand for domestic and foreign cars.
With higher demand, prices could rise due to increased purchasing power.
Brenner said many of the companies he works with manufacture components forGerman luxury vehicles.
They may use these extra profits to further improve design and performance to stay ahead of competitors.
marketwould be forced into one of two choices.
auto market, the net impact would depend on how demand, supply and strategic pricing decisions interact.
This scenario has the potential to bolster domestic car manufacturers and bolster employment in theUnited States automotive industry.
The problem there is that countries that felt unfairly targeted likely would impose retaliatory tariffs to makeU.S.
exportsmore expensive and, therefore, less competitive.
A devalued dollar is another.
If demand for foreign cars in the U.S. increases significantly, this could affect the exchange rate of theU.S.
dollar, said Ray Lauzums, who engages in international shipping as the CEO of the Wisconsin-based toy sellerPoggers.
Higher import demand could lead to a widening of the trade deficit as more foreign cars are imported.
Also, the modern global economy blurs the line betweenforeign and domestic particularly when it comes to making cars.
assemble at least some of their vehicles in the United States.
Foreign car manufacturersmay adjust their pricing strategies based on increased demand in the U.S. market, Lauzums said.
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