Trump announces 25% tariffs on all cars not made in US

[christof]

Breaking news:

https://www.bbc.com/news/articles/cly341xr45vo

What effect will this have on Aston Martin's sales figures?

[Minglar]

christof said:

Breaking news:

https://www.bbc.com/news/articles/cly341xr45vo

What effect will this have on Aston Martin's sales figures?

I posted a similar link in the “AML - Stock Market Listing” thread earlier but have since deleted it. I guess you could look at it two ways. Some US buyers of Aston Martins probably aren’t too worried about paying another 25% on top of what is already a relatively expensive purchase price, ie if they really want one they will buy one. Having said that, there is a lot of inventory sitting in the US at the moment, and wholesale volumes (sorry to use that term, but AML insists…) have already dropped by 5% (2024 v 2023). My gut feeling is that this is probably not good news for AML as in 2024 the US accounted for roughly one third of total sales. Let’s wait and see how the SP reacts tomorrow morning I guess. BRM.

[Simpo Two]

If we'd done that 40 years ago we might still have a car industry.

[hidetheelephants]

Simpo Two said:

If we'd done that 40 years ago we might still have a car industry.

Would it have miraculously made fleet managers buy Montegos instead of Sierras and Cavaliers? British car makers benefitted from the Sterling Area effectively putting tariffs on european and US car makers for a considerable period postwar, yet they still managed to fritter it away.

[Beckson]

I spend a lot of time in the US auto industry professionally. This will hurt many US manufacturers as many are made in mexico or even toyota makes US bound cars in canada and ships via rail/truck etc to US. total dumbsh%t move as he touted his own USMCA agreement in 2018/2019 as the greatest deal ever, and most did feel it was a solid update to nafta, but this mexico/canada tariff stuff will 100% increases prices of many things to us consumers and is violation of his own agreement. But who knows... he changes his mind every few days. so i wouldn't hold my breath quite yet.

I really do hope for AM's sake and others there is not an overnight 25% increase on the cost of a vantage or something. ridiculous

[h0b0]

The White House said:

Importers of automobiles under the United States-Mexico-Canada Agreement will be given the opportunity to certify their U.S. content and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content.
USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.

[h0b0]

My wife and I will be buying a car tomorrow night because of this. We planned to buy a replacement for her Audi when I got back from work travel at the end of April. This has brought up the schedule to before I leave.

The only glitch is that her Audi is being repaired under warranty as it is a piece of garbage. Hopefully, a flexible deal can be made.

[Jay_Davis]

No chance I'm buying something new. Not paying 25% extra. This will likely also push up used prices significantly on relatively recent used cars too. Guess I keep my 2020 Vantage for a while, and, after that, look at something much older. Or move to another country.

I feel bad for people that had a car on order that won't arrive in time.

[foxsasha]

Its 25% on import cost, import cost isnt retail/selling price so cost to customer wont go up 25%. If import cost is 10,000USD then it will go up to 12,500USD. If selling price is 20,000USD then it would go up to 22,500USD if the full extra cost was passed on to the consumer.

[ChocolateFrog]

Are we the only country in the world not retaliating?

Cow towing to the bully.

[alscar]

DT continues to behave or live up ( or down ?) to his reputation as a hard nosed businessman rather than as POTUS.
Overall car import numbers could reduce by around 75% whilst adding circa 5% ( if passed on ) to the retail cost.
Until he changes his mind.

[Simpo Two]

hidetheelephants said:

Would it have miraculously made fleet managers buy Montegos instead of Sierras and Cavaliers? British car makers benefitted from the Sterling Area effectively putting tariffs on european and US car makers for a considerable period postwar, yet they still managed to fritter it away.

No, it would have made foreign cars more expensive, so we'd have been more likely to buy British cars. How politicians may then mess up resultant opportunities is of course a different matter.

[otolith]

Simpo Two said:

If we'd done that 40 years ago we might still have a car industry.

40 years ago we had been in the EEC for over a decade.

[h0b0]

Simpo Two said:

hidetheelephants said:

Would it have miraculously made fleet managers buy Montegos instead of Sierras and Cavaliers? British car makers benefitted from the Sterling Area effectively putting tariffs on european and US car makers for a considerable period postwar, yet they still managed to fritter it away.

No, it would have made foreign cars more expensive, so we'd have been more likely to buy British cars. How politicians may then mess up resultant opportunities is of course a different matter.

It would not have made British cars better though. It’s likely to make them worse! Should we have supported British Layland longer? It was a badly run company not a victim of an unfair market place.

Tariffs, in the past, were meant to target countries with low wages to “even the playing field”. These tariffs are just acceptance that US manufacturing is falling behind.

Consumers have voted. I watched the shift over the last 20 years. The typical US built vehicle is massively improved because of the competition. If we use tariffs to take that away the product will go back to being terrible.

When it was 98% US, the cars were garbage. They had earned their reputation on Top Gear. When the stock market crashed in 2008 and the main manufacturers were bailed out, there was a change. They started making better products. But, their historical finances still held them back. Musk doesn’t have to pay pensions from the last 50 years. If Trump wanted to save US car manufacturers he would do something meaningful for the pensions.

Do we think US manufacturers will keep their prices where they are now?…?

We have 50% tariffs on washing machines from Trumps first term. Is a GE or Whirlpool washing machine 50% less than an LG or Samsung. No. Are they better at the same price. No. Tariffs destroyed competition.

[Austin Prefect]

ChocolateFrog said:

Are we the only country in the world not retaliating?

Cow towing to the bully.

If the bully is putting additional taxes on his own citizens, putting additional taxes on our own isn't retaliating.

[hidetheelephants]

A fair chunk of what we import from the US is hydrocarbons; daft as this govt is I doubt they are suicidal enough to put more tax on fuel.

[christof]

Just read that Ferrari increased prices for US cars by 10%
Stock is up.

[Ghini]

christof said:

Just read that Ferrari increased prices for US cars by 10%
Stock is up.

The increased with only 10%, they are swallowing the other 15%..

[embdenb]

Ferrari will not be affected. Their buyers believes Ferrari is doing them a favor by allowing them to buy their cars at whatever price they choose. The domestic US car companies and the used car markets will suffer. The problem is the our president can’t think that far ahead. He believes that the world will cave to his demands. That ship has sailed, he just doesn’t know it.

[Jay_Davis]

I think everyone might be affected to some degree. Not only because of these specific taxes raising the price of cars, but taxes put on other US goods in response will all combine to slow the entire economy. Not to mention people in Europe and elsewhere simply deciding not to buy things from the US, which I can certainly understand and would do the same.

But at least we'll be able to vacation in Greenland.