Fact Check Analysis: General Motors Sounds The Alarm On Trump’s Tariffs

Published by DBUNK LLC on January 21, 2025

One of our subscribers submitted this article for review, concerned about the potential spread of
misinformation regarding the impact of proposed tariffs under the newly inaugurated President Trump. If you
have a question about a news article, you can also submit it for free, and we’ll investigate and publish the
results!

Does the article accurately portray the effects of Trump’s proposed tariffs?

The article titled “General Motors Sounds The Alarm On Trump’s Tariffs” raises significant
economic concerns regarding tariffs on Canada and Mexico. However, our investigative review finds multiple
instances of missing context, unsubstantiated claims, and potential bias in its presentation.

Misinformation and Missing Context

The article claims, “If Trump follows through with his plan to push forward with tariffs, decades of progress
could be unraveled from the delicate North American auto industry supply chain, causing vehicle prices to
spike.” While this statement has some basis in economic principles—tariffs may lead to higher production
costs and, subsequently, prices—it lacks specificity and context. How much would car prices increase? The
article provides no solid data or informed estimates to substantiate this claim. For example, studies from
past tariff implementations—such as those imposed by Trump in 2018—showed an average increase of about 3-5%
on affected goods, but this varied widely depending on other economic factors like supply chain adjustments
and global trade responses.

Furthermore, the suggestion that vehicle tariffs could result in “disaster” for vehicles assembled in the
U.S., regardless of brand, is hyperbolic and not supported by evidence. While some disruption is likely in
the short term, companies often adapt through cost-cutting or sourcing from tariff-free regions. The
long-term implications depend on multiple variables, such as retaliatory tariffs, consumer demand elasticity,
and government exemptions, none of which are discussed here.

Bias in Presentation

The article frames Trump’s tariff policy almost exclusively in a negative light, highlighting criticism from
GM’s Canadian president and Canadian officials without providing perspectives from U.S. policymakers or
industry groups who may support tariff measures as a way to bring manufacturing back within the U.S. or
protect domestic jobs. While the negative impacts of tariffs are worth discussing, a balanced article would
present opposing views or evidence of potential benefits, such as strengthening U.S. industries or increasing
federal tax revenues.

Reader Question: How Much Could Car Prices Realistically Increase?

To address the question submitted by our audience—how much car prices could realistically increase if Trump’s
tariffs go through—it depends on a host of factors. Past examples, including tariff policies from 2018, often
resulted in price increases of 3-5% for affected vehicles, translating to an additional $1,000 to $2,000 for
the average new car. If the tariffs on Canada and Mexico are set at 25% as proposed, the effect could be
slightly higher, potentially adding $2,500 to $5,000 to the cost of a mid-priced vehicle.

Who profits most? Typically, tariffs generate revenue for the imposing country—in this case, the U.S.
government. However, some domestic automakers could benefit if tariffs significantly discourage imports and
push consumers toward vehicles manufactured entirely within the U.S. That said, over-reliance on tariffs as a
revenue source can backfire if trading partners retaliate, and any boost to jobs or manufacturing typically
takes years to materialize.

Final Assessment

While it is reasonable to discuss the risks associated with tariffs, the article by InsideEVs contains both
alarmist undertones and a lack of supporting data to back certain claims. A comprehensive analysis would have
required projections from credible economists or automotive industry reports detailing how the tariffs could
concretely affect manufacturers, suppliers, and consumers. Additionally, the exclusion of potential benefits
tied to the tariffs creates a one-sided narrative rather than a balanced view for readers.

We encourage our users to question such incomplete claims and to seek out diverse sources. DBUNK is here to
cut through the noise and provide the clarity you deserve. Download our app to stay empowered and make sure
truth always prevails.