In the world of politics and economics, it seems like a little bit of maneuvering and tweaking is always happening, especially when it comes to tariffs. President Trump, ever the shrewd businessman, is dictating a new direction concerning automotive tariffs that’s bound to stir a pot or two. Instead of stacking additional tariffs on the materials needed for making cars, Trump has decided to stick with the 25% tariff on imported vehicles and throw in some perks for automakers. The automakers will receive reimbursements for some of the tariff costs, a move which has garnered praise from America’s Big Three automakers.

Some might wonder why this is such a big deal. Well, it’s because it could mean a significant boost for the U.S. manufacturing sector. States like Michigan, Indiana, Pennsylvania, and Wisconsin are buzzing with the news, as these areas are the cradles of American auto manufacturing. Convert skeptics into believers by imagining a scene where more cars roll off U.S. assembly lines, bringing jobs and economic growth. For politicians, especially those on the Republican side, it’s a chance to rebuild the industrial heartland, one car at a time.

But it’s not all joyrides and new car smells. The Wall Street Journal warns of a different danger lurking around the corner with their predictions. Their analysts have run the numbers, and a 25% tariff might raise the average cost of a car by a staggering $6,000, translating into a 10% to 12% price hike. Clearly, not everyone is convinced this will be a smooth ride.

However, contrary to the gloom-and-doom scenarios laid out by experts, car companies like Ford and Stellantis are offering employee pricing, and Hyundai is holding its sticker prices steady. Prices even appear to be heading southward, rather than spiking as some forecasts predicted. It’s almost as if Trump found a way to refute basic economic principles—an achievement that perhaps should be celebrated or scrutinized, depending on one’s point of view.

Now, someone might be tempted to say it’s all about who’s the biggest player on the political block. The Biden administration has been pushing for an electric vehicles (EV) revolution, which some argue has hiked up car prices by $8,000 over recent years. While Trump’s focus shifts back to gasoline and diesel engine vehicles, he seems content to let the marketplace—and not government mandates—decide the future of the automobile. Whether this new tariff stance ends up driving prices down or creating more confusion, it’s clear that in the world of tariffs, policy changes, and economics, there are no backseat drivers.