(The Center Square) – Americans could soon pay higher prices for cars as a result of President Donald Trump’s new tariffs on passenger vehicles, pushing prices that were already out of reach for many even higher.

A new analysis from the Center for Automotive Research, a nonprofit, underscores the complexity of the automotive supply chain, noting that “the modern automotive supply chain is both global and complex, convoluting the seemingly simple question of the cost of 25% tariffs on the industry.”

“Automakers and their suppliers are often multinational companies with facilities spread out across the world, making it difficult to discern how much of a vehicle is domestically produced,” said Dr. K. Venkatesh Prasad, senior vice president of research and chief innovation officer at CAR.

One thing is clear: Price hikes are coming for every vehicle. 

“All vehicles – whether produced or sold in the U.S. – would be affected by the 25% tariffs, as no vehicles are built with 100% U.S. domestic content,” the report noted.

Even before Trump’s auto tariffs – which extends to passenger vehicles and auto parts – many cars were too expensive for many Americans. The average price of a new vehicle in the U.S. is above $48,000, according to Cox Automotive. Real median household income was $80,610 in 2023, according to the U.S. Census Bureau. 

However, more than 40% of new-vehicle sales by volume in 2024 were priced less than $40,000.

“These vehicles are particularly vulnerable to the new tariffs,” according to an analysis from Cox. “Our analysis suggests the 25% tariff on imported vehicles will apply to nearly 80% of vehicles priced under $30,000.”

The Center for Automotive Research estimated the average tariff cost per vehicle would be $4,239 based on the imported auto parts for U.S. produced vehicles. For imported vehicles, CAR estimated the average tariff cost per vehicle would be $8,722.

Altogether, the tariffs would increase costs for all U.S. automakers by $107.9 billion, according to CAR. 

“The Detroit Three automakers would bear greater overall cost increases from tariffs on imported parts – affecting domestic vehicle production – than from tariffs on their imported vehicles,” CAR noted.

CAR said its estimates were likely low. 

“CAR’s tariffs impact estimate is likely understated because of cross-border trade activity – common for parts but difficult to estimate on a case-by-case basis,” it noted.

Cox put it this way: “All roads lead to this fact: In the coming months and years, as new tariffs settle into place, vehicle prices in the U.S. are expected to increase.”

“Our expectation is that vehicles impacted by these tariffs could see prices increase 10-15%,” Cox noted. “In addition, given market dynamics, we also anticipate seeing at least a 5% increase in prices of vehicles not subjected to the full 25% tariff.”

Cox also said it expects production disruptions and production declines as a result of the tariffs.

“April and May may well be good months for vehicle sales, with consumers feeling an urgency to buy, even though loan rates remain close to 25-year highs and incentives are likely to shrink,” the report noted. “Production disruptions and declines could be a reality this summer, especially as automakers and suppliers work to align practices with the new rules.”

The Budget Lab at Yale came up with similar estimates. It estimated prices would climb by 13.5% on average, the equivalent of an additional $6,400 to the price of an average new 2024 car.

(The Center Square) – Reversing Biden administration policies that halted offshore leasing, prompting lawsuits and restricting oil and natural gas development, the Trump administration is expanding offshore capabilities.

Interior Secretary Doug Burgum directed the Bureau of Ocean Energy Management to hold the administration’s first offshore lease sales in the Gulf of America, with the first proposed notice of sale slated for June.

“By continuing to expand offshore capabilities, the United States ensures affordable energy for consumers, strengthens domestic industry and reinforces its role as an energy superpower,” the Interior Department says. “Opening the Outer Continental Shelf is central to this strategy as it unleashes domestic energy potential that had been blocked under the previous administration,” and is expected to generate tens of thousands of high-paying jobs throughout the industry.

The BOEM also released a new analysis stating that a significant increase of estimated oil and natural gas reserves exists in the Gulf of America Outer Continental Shelf. BOEM’s updated assessment evaluated more than 140 oil and natural gas fields, identifying 18 new discoveries, and analyzed more than 37,000 reservoirs across 1,336 fields in the Gulf.

It says there’s an “additional 1.3 billion barrels of oil equivalent since 2021, bringing the total reserve estimate to 7.04 billion barrels of oil equivalent. This includes 5.77 billion barrels of oil and 7.15 trillion cubic feet of natural gas – a 22.6% increase in remaining recoverable reserves.”

“This new data confirms what we’ve known all along – America is sitting on a treasure trove of energy, and under President Trump’s leadership, we’re unlocking it,” Burgum said. “The Gulf of America is a powerhouse, and by streamlining permitting and expanding access, we’re not just powering our economy – we’re strengthening our national security and putting thousands of Americans back to work.”

The comprehensive review added 4.39 billion barrels of oil equivalent in original reserves, BOEM found. “After subtracting production of 3.09 billion barrels of oil equivalent since 2020–2021, the net increase reflects continued opportunity and momentum in offshore development,” it says.

“The Gulf of America is delivering 14% of the nation’s oil,” BOEM Gulf of America Regional Director Dr. James Kendall said. “These updated estimates reaffirm the Gulf’s vital role in ensuring a reliable, affordable domestic energy supply.”

The BOEM oversees nearly 3.2 billion acres of the Outer Continental Shelf, with roughly 160 million acres located in the Gulf.

“Energy dominance is a pillar of U.S. economic strength and global leadership,” the Interior Department argues. “By expanding offshore capabilities, the United States ensures affordable energy for consumers, creates high-paying jobs, and reduces dependence on foreign adversaries. … Expanded leasing is projected to create tens of thousands of jobs across exploration, production, logistics and supply chains — revitalizing coastal economies and fueling American innovation.”

Shell Offshore Inc., a subsidiary of Shell plc, also announced it is beginning production at Dover, a second subsea tieback connecting new wells to existing infrastructure of its Appomattox production hub in the Gulf of America. Dover’s estimated peak production is 20,000 barrels of oil equivalent a day, it says.

Shell is the leading deep-water operator in the Gulf of America; Dover was discovered under the first Trump administration in 2018.

It’s located in Mississippi Canyon, roughly 170 miles offshore southeast of New Orleans.

Shell estimates that Dover will “contain 44.5 million barrels of oil equivalent recoverable resources, adding stable, secure energy resources.”

Outer Continental Shelf oil and gas activities have generated billions of dollars in revenue from lease sales, rental fees and royalties to the federal government and states, helping to fund infrastructure, education and public services and wildlife conservation. They also help strengthen U.S. energy independence, national security and global stability, by reducing reliance on foreign producers, the Trump administration argues.

Offshore production in the Gulf of America accounts for the third greatest volume in the country, of nearly 1.8 million barrels of oil per day, according to Energy Information Agency data from January. The greatest volume is produced in the Permian Basin in west Texas, which leads the U.S. in oil and natural gas production, The Center Square reported.

(The Center Square) – Hurricane Helene has put a new focus on the health of streams in North Carolina and making sure they are clear of debris such as fallen trees and trash.

When heavy storms hit, clogged streams can cause flooding to farmland, damage to bridges and homes and also make recreation, such as canoeing more difficult.

“A lot our streams across North Carolina typically have not had a typical maintenance type program,” Bryan Evans, executive director of the North Carolina Association of Soil and Water Conservation Districts, told The Center Square.

Fixing the problem will require millions of dollars in federal and state tax dollars, Evans said.

The issue of stream clearing in North Carolina also came to the forefront after hurricanes Florence and Matthew, and the Legislature responded in 2022 with $36 million in funding for the Streamflow Rehabilitation Assistance Program also known as STRAP.

“It is set up to be a maintenance program, a proactive program to keep our streams functioning the way they should, prior to a storm,” Evans said.

When the STRAP program was first funded, soil and water districts throughout the state estimated that they needed $320 million for debris removal and other work.

The Legislature approved a second round of funding last year for $19.3 million and by then the cost of the work needed to be done dropped to around $200 million.

Then, last September, came Helene. The scope of the damage was so large that federal agencies and programs are still in charge of clearing and repairing it.

A federal program, the Emergency Watershed Protection Program, is in charge of stabilizing streams and removing debris, Evans said.

“In these areas where a blockage has happened, a lot of times the water will go around and it starts degrading the streambed and destabilizing the stream banks,” Evans said. “EWP also helps assist with that – they go back and stabilize those banks, especially where there are structure that are threatened because the streambeds are creeping in on them.”

The Federal Emergency Management Agency and the U.S. Army Corps of Engineers are also involved in the Helene recovery effort.

“FEMA comes in and they do some debris removal that is considered an imminent threat,” Evans said.

The agencies are still performing an assessment of the damage in North Carolina. Only after that assessment is complete will the EWP fully kick in.

“Helene has affected so many places at such a level that we’ve not seen before,” said Evans.

State officials are working closely with federal agencies on the recovery. State efforts will focus on areas of state that are that outside of the federal efforts, said Evans.

“Once EWP completes what it can do within its scope, we will look at the STRAP program to pick up any additional things,” Evans said. “It’s all about working on streams to try to keep them healthy, to try keep them functioning.”