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The possible effects of this have to be speculation, but the Commerce Department has just made a finding that allows the president to impose tariffs of up to 25% on cars imported unto the U.S., as long as he acts within a 90-day window.
Though this may be posturing in hopes of reducing foreign tariffs (for instance the EU taxes US cars at 10%, while we tax theirs at 2.5 per cent, except pickup trucks at 25%), if implemented at the highest level I would think the effects on some models and brands in the U.S. would be drastic, and even if implemented at 10% the tax could seriously hurt the sales of some models.
I wonder what effect Allpar readers speculate there would be on FCA if this happened, whether the rate was perhaps 10% or 25%, and whether or not Canada and Mexico would be included, (I would hope not, since we've negotiated an updated trade agreement with them.), and whether or not the situation was temporary. On the other hand, what if the move was a successful effort to get the EU to lower rates (possibly in exchange for the US the rate on imported pickup trucks in return)?
Any effects would have to reflect not just FCA vehicles, but also competitors, for instance, the Giulia and the
BMW 3-series both come from Europe.
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For FCA, here's where it looks to me that cars are made that are imported for US sale (some of this info may be wrong or dated):
CANADA: Dodge Caravan, Charger and Challenger; Chrysler Pacifica and 300
MEXICO: FIAT 500 (is it still there? in 2017 it was reported sourcing was shifting to existing line in Poland), Dodge Journey, larger RAM pickup trucks, possible the RAM 1500 Classic (the new 1500 is US-built), Jeep Compass
ITALY: All Alfas and Maseratis; getting production of the Fiat 500e; Fiat 500X, Jeep Renegade, future FIAT 500e's
TURKEY: RAM Promaster City
SERBIA: Fiat 500L
JAPAN: Fiat 124 Spider
I have read that the only US-brand FCA vehicles with significant sales in Europe are the Italian-made Renegade and the Mexican-made Compass.
A number of these vehicles are built at additional plants around the world, but not to US Spec.
Here are links to the original article and a list of which cars are made in the US (in some cases, there are cars made in the U.S. where a particular trim level is only made elsewhere.) I couldn't find a similar list for the rest of the world.
List of automobiles manufactured in the United States - Wikipedia (at https://en.wikipedia.org/wiki/List_of_automobiles_manufactured_in_the_United_States )
Trump administration withholds report justifying 'shock' auto tariffs (at https://www.politico.com/story/2019/03/20/trump-tariffs-automobiles-commerce-1228344 )
Though this may be posturing in hopes of reducing foreign tariffs (for instance the EU taxes US cars at 10%, while we tax theirs at 2.5 per cent, except pickup trucks at 25%), if implemented at the highest level I would think the effects on some models and brands in the U.S. would be drastic, and even if implemented at 10% the tax could seriously hurt the sales of some models.
I wonder what effect Allpar readers speculate there would be on FCA if this happened, whether the rate was perhaps 10% or 25%, and whether or not Canada and Mexico would be included, (I would hope not, since we've negotiated an updated trade agreement with them.), and whether or not the situation was temporary. On the other hand, what if the move was a successful effort to get the EU to lower rates (possibly in exchange for the US the rate on imported pickup trucks in return)?
Any effects would have to reflect not just FCA vehicles, but also competitors, for instance, the Giulia and the
BMW 3-series both come from Europe.
=========================================================
For FCA, here's where it looks to me that cars are made that are imported for US sale (some of this info may be wrong or dated):
CANADA: Dodge Caravan, Charger and Challenger; Chrysler Pacifica and 300
MEXICO: FIAT 500 (is it still there? in 2017 it was reported sourcing was shifting to existing line in Poland), Dodge Journey, larger RAM pickup trucks, possible the RAM 1500 Classic (the new 1500 is US-built), Jeep Compass
ITALY: All Alfas and Maseratis; getting production of the Fiat 500e; Fiat 500X, Jeep Renegade, future FIAT 500e's
TURKEY: RAM Promaster City
SERBIA: Fiat 500L
JAPAN: Fiat 124 Spider
I have read that the only US-brand FCA vehicles with significant sales in Europe are the Italian-made Renegade and the Mexican-made Compass.
A number of these vehicles are built at additional plants around the world, but not to US Spec.
Here are links to the original article and a list of which cars are made in the US (in some cases, there are cars made in the U.S. where a particular trim level is only made elsewhere.) I couldn't find a similar list for the rest of the world.
List of automobiles manufactured in the United States - Wikipedia (at https://en.wikipedia.org/wiki/List_of_automobiles_manufactured_in_the_United_States )
Trump administration withholds report justifying 'shock' auto tariffs (at https://www.politico.com/story/2019/03/20/trump-tariffs-automobiles-commerce-1228344 )