USA Import Duty

[krissrock]

doesn't VAG have VW factories in the states? i think Tennessee?
If they were to even spin up new factories to deal with the tariffs, I'd image they'd be for Audi over porsche.
And even better, if they did start mfr'ing here, probably wouldn't see it till the next administration anyway, and I highly doubt those savings would be passed on to the consumer...

 

[Senna]

It’s still too early to say, but pushing Germany away might not be the best idea, especially since the western countries have a big fish to fry with the CCP dominating the EV battery market.

 

[KJohn3333]

The current tariff of German cars into the US is 2.5% compared to 10% on American made cars into the EU. As a result of Trump's victory BMW shares fell by 6.6%, Mercedes-Benz by 6.4%, Porsche by 4.9% and Volkswagen by 4.3%.

I think ultimately what Trump wants is European manufacturers investing in production facilities in the US to create jobs. I read Germany export 400,000 cars to the US each year.

 

[tmrqs]

I think ultimately what Trump wants is European manufacturers investing in production facilities in the US to create jobs. I read Germany export 400,000 cars to the US each year.

Decades ago, my dad bought a 911 Targa made in the US. It was a thing.

 

[ColdCase]

Even cars assembled in the US, as well as US based car makers, have 50 to 90% imported parts and subject to tariff. You think prices are high now, just wait a year. Few will be able to afford a car for the price of a home, and production facilities will be closing, less jobs, vicious circle perhaps.

The Biden admin worked to move production to the US, convincing VAG to assemble the ID.4 in the US among other models, and they have a US battery plant that qualifies them for the $7500 tax credits. I was just about to buy a Pro S when the stop sales order hit (door handle recall). Now looking at Macan, sometimes one lucks out, even though you can buy two fully equipped ID.4 Pros for the same money as an average 4S. Nice transportation appliance, not nearly as much fun to drive.

 

[KJohn3333]

Could a potentially big hike in new car prices enhance residual values of used cars?

 

[Dragon Tourniquet]

Could a potentially big hike in new car prices enhance residual values of used cars?

To some extent it could, but the amount depends on how much the tariffs depress new car sales.

 

[krissrock]

just though about something... Trump is going to eliminate the EV credits. Who know how quickly that could happen.
for those trying to work the 7500 credit via a lease, and possibly buy in a few months,... i wonder if that will just be taken off the table at dealers......

or heaven forbid, when you come back to buy, they want to add the 7500 back in cuz they can no longer get the credit... smh

 

[Dragon Tourniquet]

just though about something... Trump is going to eliminate the EV credits. Who know how quickly that could happen.

Since the credit is part of the tax code he can't get rid of it as easy as he can implement tariffs, as he'll need legislation passed. Since they control all branches of government that will happen, but it will take a little longer and will likely be part of budget reconciliation, which will take them a month or two.

for those trying to work the 7500 credit via a lease, and possibly buy in a few months,... i wonder if that will just be taken off the table at dealers......

I doubt they'd just take it off the table right away, as they are going to want to sell what they've already produced up until the tax code is scheduled to change. My guess is they keep offering it until the day the new tax / budget package is made public, as that will likely be the day the credit goes away.

or heaven forbid, when you come back to buy, they want to add the 7500 back in cuz they can no longer get the credit... smh

They won't be able to do that because the lease contract spells out all the requirements to buy it out, and saying you have to pay that extra amount would mean they're changing the contract.

 

[bbmertz]

Unfortunately not only tariffs but resumed U.S. port strikes in mid-January may impact Porsche and other imports next year.
https://www.cnbc.com/amp/2024/11/19/trump-tariffs-new-port-strikes-shippers-on-edge.html

 

[PanameraFrank]

The threat of tariffs will be enough to raise prices.

Porsche can't just open up a factory here. They'd still have to import parts and the prices would be astronomical. They'd probably just downsize and cut US sales off first.

Also US car manufacturers will jump at the opportunity to raise prices as they lose competition. That's the fun part about tariffs, they'll increase the cost of domestic goods as well.

 

[Dragon Tourniquet]

The threat of tariffs will be enough to raise prices.

I doubt Porsche NA would do it early, especially since the Monroney sticker doesn't get created until it clears customs. They'll know at least a few days in advance that it's coming, so they can update the system to build the price increase in for all cars imported after day X. Why price yourself out before you have to?

Now I could see dealers trying to raise the price with that excuse, but they'd have to tack it on as a dealer markup, since the sticker would list the official MSRP and that won't change once the car has the sticker.

Also US car manufacturers will jump at the opportunity to raise prices as they lose competition. That's the fun part about tariffs, they'll increase the cost of domestic goods as well.

That I can definitely see happening, but they're going to have a problem too since he's even talking about tariffs on items imported from Mexico (ignoring the USMCA, a trade agreement he oversaw the negotiations for). And a lot of their cars and parts are imported from there.

 

[krissrock]

well there you have it... Latest reports, he's saying he's going to enact tariffs on Day 1.
25% on Canadian and Mexican goods...but interestingly, only 10% on chinese goods.
someone musta had a chat with him...

" Analysts have estimated that a tariff could add $1,000 to $5,000 to the price of a new car, with parts such as engines, transmissions and tires becoming more expensive. Replacement parts would also become more expensive because of the tariffs. "

" Canada is the largest exporter of crude oil and refined petroleum to the U.S. A 25 percent tariff would increase fuel costs, affecting gas prices and heating oil. This means consumers would likely see higher prices at the pump, with several cents per gallon being added to gasoline and diesel prices."

article talks about plastics, machinery and metals being impacted as well.

 

[gregb]

My plan is to wait until an actual tariff is imposed on imports from EU before worrying. This is not the first time where things have been said but nothing actually happens.

 

[Dragon Tourniquet]

Even if he signs the EOs on day 1, CBP wouldn't be able to implement them that quickly. Their tariff schedule isn't designed for that kind of update. But yeah, they're coming.

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