New tariffs will probably increase the prices for many cars in the USA – also for spare parts for repairs or after accidents. Consumers have to pay. US President Trump, according to his own statement, is “completely nothing”.
In his own words, US President Donald Trump is “completely” no matter “if the vehicle prices in the USA increase due to the auto duties he imposed. Trump was interviewed in an interview with the US broadcaster NBC about the consequences of his plans and said:
“I hope you increase your prices because if you do that, people in America will buy cars. We have plenty of it.”
When asked what he would say concerned, Trump replied: “The message is: Congratulations. If your car builds your car in the USA, you will make a lot of money.”
Customs on imported cars and auto parts
Trump announced tariffs of 25 percent on car imports from abroad on Wednesday. The tariffs should apply to all cars that have not been produced in the United States and must be paid from April 3. Auto parts are also to be covered with tariffs. For car imports that fall under the North American USMCA free trade agreement with Canada and Mexico, a low duty can apply depending on the proportion produced in the USA.
In view of the global supply chains, Trump’s tariffs are also likely to meet US carmakers. The president wants to strengthen the domestic economy with the tariffs according to his own statements and reduce the US foreign trade deficit.
Experts warn of rising prices for US consumers. Trump’s approach has also fueled fears before a possible international trade war with devastating consequences for the global economy.
Ferrari wants to increase prices
In view of the additional tariffs threatened by US President Donald Trump by US President Donald Trump, European carmakers are struggling with import vehicles. According to industry circles, the main question is whether and how strongly the prices should be raised on the US market. “Nobody can afford to pass on the tariffs,” quotes Reuters Insider’s news agency.
Ferrari was the first carmaker to commit himself on Tuesday and explained that the prices for the sports cars should be increased by up to ten percent after April 2. The French supplier Valeo has also announced that it will pass the higher costs as soon as they are in force.
Rising prices, shrinking market
The German car manufacturers are heavily dependent on imports at their US business. The Volkswagen daughters Audi and Porsche do not have their own production in the USA and therefore have to import their entire volume. Both companies have announced in recent weeks to check higher prices to compensate for customs risks.
BMW has a great work in the USA where SUV models run off the assembly line. The company had recently declared in the Wall Street Journal to forego price increases by May.
According to Reuters, analysts expect the car prices in the USA to increase on average by seven percent. This should not remain with no effect on demand: the entire car market could then shrink from 16 million to 15 million cars.
