Tariffs - If EU are included

[Wivenhoe]

I just checked my UK order regards tariffs. I couldn’t see a specific provision covering increases in the Order value, but did notice that there is an “Events Outside Our Control” clause which includes a change in law. Can Porsche increase the order value to include a tariff that was brought in after the date of the agreement ?. Trump seems to indicate that he will enforce tariffs on the EU because of the deficit in trade - German car manufacturers are a big part of that. With the shipping time to the US is it possible cars that will be manufactured this month will be the subject to tariffs - if Trump includes the EU. A 25% tariff on a Macan EV would increase the cost differential with say Tesla by say $ 25k or Porsche lose 25% income !

My car won’t be affected as it is very unlikely the UK will levy tariffs on EU products, but I’m thinking that if the US market for Porsches takes a dive then will they be tempted to ‘dump’ cars in the EU & UK and so residuals will dive.

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[W1NGE]

I just checked my UK order regards tariffs. I couldn’t see a specific provision covering increases in the Order value, but did notice that there is an “Events Outside Our Control” clause which includes a change in law. Can Porsche increase the order value to include a tariff that was brought in after the date of the agreement ?. Trump seems to indicate that he will enforce tariffs on the EU because of the deficit in trade - German car manufacturers are a big part of that. With the shipping time to the US is it possible cars that will be manufactured this month will be the subject to tariffs - if Trump includes the EU. A 25% tariff on a Macan EV would increase the cost differential with say Tesla by say $ 25k or Porsche lose 25% income !

My car won’t be affected as it is very unlikely the UK will levy tariffs on EU products, but I’m thinking that if the US market for Porsches takes a dive then will they be tempted to ‘dump’ cars in the EU & UK and so residuals will dive.

Trump is playing games and this self-defeating policy will be short lived as someone will point out that it isn't all one way traffic. Find it odd too that certain countries are being treated more favourably than others but then we saw a complete u-turn on a certain social media product shortly after the inauguration during the blizzard of "Executive Orders".

Don't forget that BMW make cars in US (Spartanburg).

Canada makes many automotive parts for vehicles manufactured in US (I think Trump overlooked that one).

EU prices to UK shouldn't be impacted - there will of course be an annual price increase making Macan EVs / Taycans even more expensive than they need to be.

Fortunately a Tesla is not a Porsche and so for most brand will be a strength.

Tariffs (I think) hit when the product / service lands in country.

 

[krissrock]

well the tariffs are between us, canada and mexico...being that the Macan are built in germany, i can't imagine there are parts that are going betwen the use/canada/mexico and then to germany.
but who knows... i'm doubtful you'll see any difference...

 

[Wivenhoe]

Apologies if my point wasn’t clear - what would happen if Trump put tariffs on the EU the BBC in the UK reports today - Asked by the BBC if the EU was next, President Trump says "it will definitely happen" - but suggests a deal "can be worked out" with the UK

This then would increase the cost of a car made in Germany up to say 25% more and the tariffs could be brought whilst cars are crossing the Atlantic. I understand the tariffs are paid by the importers so wouldn’t that be Porsche America or the dealers, not Porsche Germany.

 

[shawn]

I just checked my UK order regards tariffs. I couldn’t see a specific provision covering increases in the Order value, but did notice that there is an “Events Outside Our Control” clause which includes a change in law. Can Porsche increase the order value to include a tariff that was brought in after the date of the agreement ?. Trump seems to indicate that he will enforce tariffs on the EU because of the deficit in trade - German car manufacturers are a big part of that. With the shipping time to the US is it possible cars that will be manufactured this month will be the subject to tariffs - if Trump includes the EU. A 25% tariff on a Macan EV would increase the cost differential with say Tesla by say $ 25k or Porsche lose 25% income !

My car won’t be affected as it is very unlikely the UK will levy tariffs on EU products, but I’m thinking that if the US market for Porsches takes a dive then will they be tempted to ‘dump’ cars in the EU & UK and so residuals will dive.

If you want to buy a Tesla or a US car in Canada you will be screwed but thankfully Porsche is not dependent on US for parts and no Tariff on Germany yet so can’t see any direct impact but Trumps mess is expanding as rapidly as a deployed airbag so that could change

 

[iPadOnWheels]

May be move to Greenland, I've heard that in the future it will not be affected by US tariffs...

 

[krissrock]

Apologies if my point wasn’t clear - what would happen if Trump put tariffs on the EU the BBC in the UK reports today - Asked by the BBC if the EU was next, President Trump says "it will definitely happen" - but suggests a deal "can be worked out" with the UK

This then would increase the cost of a car made in Germany up to say 25% more and the tariffs could be brought whilst cars are crossing the Atlantic. I understand the tariffs are paid by the importers so wouldn’t that be Porsche America or the dealers, not Porsche Germany.

Correct, Porsche of America would have to pay that and thus raising the cost of porsche's in the states.

 

[W1NGE]

Apologies if my point wasn’t clear - what would happen if Trump put tariffs on the EU the BBC in the UK reports today - Asked by the BBC if the EU was next, President Trump says "it will definitely happen" - but suggests a deal "can be worked out" with the UK

This then would increase the cost of a car made in Germany up to say 25% more and the tariffs could be brought whilst cars are crossing the Atlantic. I understand the tariffs are paid by the importers so wouldn’t that be Porsche America or the dealers, not Porsche Germany.

Already he has changed tack with Mexico, it will all be history by the weekend!

 

[shawn]

May be move to Greenland, I've heard that in the future it will not be affected by US tariffs...

Already he has changed tack with Mexico, it will all be history by the weekend!

Once the real cost to American people sinks in he will find some face saving excuse and invent a win he can brag about....which of course with be completely fabricated...but whatever. I don't think the rust belt (which basically gave him the election) is going to be too happy when the car mfg's have to raise prices or reduce profits to get parts from Canada.

 

[PrudentOcean]

Already he has changed tack with Mexico, it will all be history by the weekend!

He didn’t change tack, Mexico gave in to his demands.

It is in both nation’s interest to secure the border (for different reasons), and it looks like there will be some cooperation going forward.

Mexico had more to lose than the US did. For American consumers a trade war would have meant shortages of certain goods and paying more for them. For Mexico it would have meant losing access to their most important trading partner and lost jobs.

 

[W1NGE]

He didn’t change tack, Mexico gave in to his demands.

It is in both nation’s interest to secure the border (for different reasons), and it looks like there will be some cooperation going forward.

Mexico had more to lose than the US did. For American consumers a trade war would have meant shortages of certain goods and paying more for them. For Mexico it would have meant losing access to their most important trading partner and lost jobs.

He said there was no negotiation and apparently there was....that's a tack change.

Anyhow our comments aren't really relevant to this thread or forum.

 

[shawn]

He didn’t change tack, Mexico gave in to his demands.

It is in both nation’s interest to secure the border (for different reasons), and it looks like there will be some cooperation going forward.

Mexico had more to lose than the US did. For American consumers a trade war would have meant shortages of certain goods and paying more for them. For Mexico it would have meant losing access to their most important trading partner and lost jobs.

he funny thing is Mexico had already agreed to deploy 10k troops before the tariff threat soooo either he forgot or didn’t know.

 

[krissrock]

The stock market is gonna control his actions.
But yes that's what i heard as well. What he's touting as win was a deal done before.

 

[Icculus]

It’s looking likely that some amount of “reciprocal” tariff increase will be enacted for US-bound cars from the EU in the coming weeks. Currently the EU has a 10% tariff on US-made cars whereas the US has a 2.5% tariff on EU-made cars. While there is some debate about the EU lowering their import tariff to match ours, my instinct is that we are going to strike first and negotiate second.

I am expecting delivery early April. Will be interesting to see the degree to which Porsche NA / dealership seeks to pass along this additional cost that was not contemplated in my purchase agreement (which they have the right to do).

I am planning to sit tight until the action is announced this week before reaching out to my SA. Will share what I learn.

For those in a similar position, would be great to know how you are thinking about this and how the dialogue with your dealership unfolds.

 

[alxman]

Once the real cost to American people sinks in he will find some face saving excuse and invent a win he can brag about....which of course with be completely fabricated...but whatever. I don't think the rust belt (which basically gave him the election) is going to be too happy when the car mfg's have to raise prices or reduce profits to get parts from Canada.

Exactly!

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