WSJ just gave Trump a big economic reality check
President Donald Trump frequently claims that his tariffs are saving America’s economy, but a recent opinion piece from The Wall Street Journal Editorial Board just gave him a big reality check.
The Journal opened by mentioning that Toyota recently announced plans to invest $3.6 billion in a second assembly line at a San Antonio facility to produce its Tacoma trucks, creating 2,000 jobs in the process. Trump claimed that this vindicates his tariff system, writing on social media that “Toyota is moving from Mexico to the United States (Texas!). A really big deal. Tariffs at work!”
According to the Journal’s editorial board, this is simply not true.
“A March report by Cox Automotive found that tariffs drove a 10.4% increase in the average suggested retail price of a new car,” the Journal wrote. “Sticker prices rose by an estimated $5,000 to $8,900 for imported vehicles and about $1,600 to $2,000 for U.S.-made cars. Auto dealers—most of which are small businesses—absorbed about 4.5 [percent] of the manufacturer’s price increase.”
It continued, “Auto makers have also reduced imports, and in some cases discontinued sales, of entry-level models because the tariff costs render them unaffordable. One result is that younger and middle-class Americans are struggling to afford new cars, especially on the heels of the Biden inflation.”
The Journal is not the first organization to argue that Trump’s tariffs have made life harder for businesses. The American Institute for Economic Research senior research fellow David Hebert, writing for the paper earlier this week, made the same point.
“The incentives that annual reviews create are predictable,” Hebert explained. “Industries seeking tighter rules of origin, higher domestic-content requirements and new carve-outs will have annual opportunities to lobby Washington. The benefits will accrue to those with the resources and connections to influence the process. Trade lawyers, lobbyists and consultants who bill by the hour have had their work extended and made more expensive. The costs will be dispersed across consumers, who will pay higher prices, and workers, who will see promotions, raises and opportunities delayed.”
He added, “No one represents the workers who might have found jobs at a factory that is never built.”
After pointing out that Trump’s tariffs have destabilized the international business community, it also explained how rising prices are prompting Americans to not spend as much money on cars.
“Many are driving clunkers for longer—and paying more for repairs if they break down—or buying used cars,” the Journal wrote. “New vehicle sales have averaged 15.9 million in the first half of this year, down from the 17 to 18 million in the five years before the pandemic. When people buy fewer cars, auto makers don’t need as many workers.”
It concluded, “The uncertainty hanging over the extension of the U.S.-Mexico-Canada trade agreement is delaying some investments since businesses don’t know what the trade rules or tariffs will be in a few years—or even tomorrow with Mr. Trump. His trade oscillations and border taxes are a major reason the economy hasn’t performed as well as during his first term, and why Americans are so unhappy.”
Earlier on Wednesday, a small business coalition called We Pay the Tariffs launched an interactive map showing that Trump’s tariffs have cost American businesses and consumers upward of $317 billion since March 2025.
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