Allpar Forums banner

1 - 8 of 8 Posts

·
Registered
Joined
·
79 Posts
Discussion Starter #1
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.
=========================================================
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 )
 

·
Registered
Joined
·
1,057 Posts
About time we level the field. This has nothing to do with Canada or Mexico we already have agreements with them. If Europe tax’s our cars 10% we should tax there vehicles the same, China, Japan and Korea all protect there markets, about time we protect our manufacturins as well.
 

·
Registered
Joined
·
3,637 Posts
About time we level the field. This has nothing to do with Canada or Mexico we already have agreements with them. If Europe tax’s our cars 10% we should tax there vehicles the same, China, Japan and Korea all protect there markets, about time we protect our manufacturins as well.
Never heard about WTO? Europe is just playing by the rules.

Europe is the one which proposed no tariffs on cars between US and EU.
Trump refused it. In my eyes Trump is a deal breaker.
 

·
Yes, This MK Goes Off-Road
Joined
·
1,317 Posts
There would only be an impact to non-NA imports. So Chrysler, Dodge, Ram not impacted. Only the Jeep Renegade is imported. For Fiat, the 500 is from Mexico but the 500X is imported, but I'm not sure about the 500L. Alfa and Maserati would be the biggest impact since they don't sell as much but the margin is much better. Possibly the people that would buy them wouldn't be deterred unless other "imports" like Mercedes and BMW are built in the states, but I don't know where those're built.
 

·
Registered
Joined
·
1,057 Posts
Never heard about WTO? Europe is just playing by the rules.

Europe is the one which proposed no tariffs on cars between US and EU.
Trump refused it. In my eyes Trump is a deal breaker.
Europe wants to make the rules to suit their needs, always have. IMHO the WTO is on a par with NATO.
 

·
Registered
Joined
·
888 Posts
My guess is, there is a trade deal in our future and any such tariffs will be short lived. There will be a hit, but without delving into the politics (which is difficult to avoid since tariffs are a political topic), both sides are playing hardball. To put the tariff situation in perspective, when the U.S. imposed a future tariff of 25% on $250B against Chinese imports, China was unable to respond in kind - because they don't import $250 Billion from us on which they can apply tariffs. That is how much of a trade imbalance we currently have. China can retaliate in other ways (denying/delaying visa applications, introducing delays in customs, etc.), but they cannot match us tariff dollar for tariff dollar because of the trade imbalance. Yes, the trade spats are affecting the economy, but that is temporary. Long term, updated trade agreements are beneficial to the American economy as they provide incentive to increase domestic production.
The reality is, the Chinese economy is hurting from this more than the American economy. They've been enjoying a trade imbalance in their favor for decades. They aren't going to give that up without a fight. The only variable is how much of a fight they make out of it. So far, we've had the upper hand. Our economy is outperforming the Chinese. They're prolonging the inevitable, but are arguing for as favorable terms as they can get. My guess is, we'll have a trade deal before summer. Once that economic uncertainty is out of the way, I expect the market will celebrate and we'll have new all time highs in the S&P 500 and broader markets. We'll see. I'm heavily invested and looking forward to the economic growth. If it takes off fast enough, FCA will make even more money off of me. I'm already decided on the TRX, but a Trackhawk would compliment it quite well (and there's room in the garage for a Charger or a Challenger).
:)
 

·
Is pushing for progress!
Joined
·
3,314 Posts
There would only be an impact to non-NA imports. So Chrysler, Dodge, Ram not impacted. Only the Jeep Renegade is imported. For Fiat, the 500 is from Mexico but the 500X is imported, but I'm not sure about the 500L. Alfa and Maserati would be the biggest impact since they don't sell as much but the margin is much better. Possibly the people that would buy them wouldn't be deterred unless other "imports" like Mercedes and BMW are built in the states, but I don't know where those're built.
There would only be an impact to non-NA imports. So Chrysler, Dodge, Ram not impacted. Only the Jeep Renegade is imported. For Fiat, the 500 is from Mexico but the 500X is imported, but I'm not sure about the 500L. Alfa and Maserati would be the biggest impact since they don't sell as much but the margin is much better. Possibly the people that would buy them wouldn't be deterred unless other "imports" like Mercedes and BMW are built in the states, but I don't know where those're built.
A lot of BMW AUDI and MB and even some Volvo models are built in the US and exported around the world.

Also a lot of the Japanese models sold in the US are built here too, all of Toyotas pickups are so they don't have to pay the pick up tax.

FCA would do ok on this but truthfully so would BMW MB, AUDI,VW, Toyota, Honda, Kia, and Hyundai. as like FCA it would only effect a select amount of their line up. From what I have read the current trade disputes have cost the US the opening of new foreign car plants because they would only be able to basically service the domestic market and not the international market (IE China)
 

·
Registered
Joined
·
3,484 Posts
...
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.
...
The 25% U.S.A. import tariff is not on pickups, but on light trucks.
That means that also include SUVs market.

Also if a U.S.A. manufactured car have a minimum share of E.U. components, tan is not subject to import tariff in European Union. Some analysts estiamte that only 15% of imported in European Union vehicles made in U.S.A. were subject to import tariff.
 
1 - 8 of 8 Posts
Top