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Economics

Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem

Consumers who raced to replace their vehicles because of Trump’s trade policies risk a costly financial hangover that could last years.

Illustration: Vincent Kilbride for Bloomberg Businessweek

Takeaways NEW

Bliss Bednar’s 2023 Volkswagen Atlas was running just fine. Sure, it wasn’t the fanciest car she’d ever owned, but with home renovations to plan and rising construction costs already threatening her remodeling budget, the retired teacher in central Texas planned to stick with the three-row SUV for the foreseeable future.

Then President Donald Trump outlined 25% tariffs on auto imports, and she joined the millions of Americans racing to dealerships to snap up new models before the higher levies drive up prices by thousands of dollars.