Sure, it sounds like a great idea, raise the prices super high on European vehicles so people will be forced to buy American made vehicles. But there’s a fallout that will come crashing down on Americans.
How This Affects You
If you own a foreign made vehicle or even an American made vehicle, you’re going to pay at least 25% more on parts. Because the parts are made in some other country, typically.
If you’re driving a VW, Fiat, Mercedes, Ferrari, Lotus, BMW, etc., you already know your vehicle is made outside the states. But that American brand your kid is driving is, too.
The Number of 100% USA Manufactured Vehicles
Zero.
What it comes down to, is this. There is no escaping a huge price increase on the purchase of a vehicle and maintaining and repairing vehicles, no matter if it is a European manufacturer or a US name brand vehicle.
The worst part is that retailers typically set prices by doubling or tripling their cost. So, if that car part now costs the retailer $100 because of the new tariff, your new price is $200. That tariff is in there being multiplied as well.
How to Protect Yourself
It is too soon to tell what loopholes they were be in this legislation, as of this writing. Maybe we’ll all take a weekend trip up to Canada to go new car shopping? Maybe. But you’d have to keep it registered in Canada and the state of California won’t be tolerating that.
One thing is for sure, it’ll be extremely expensive to hold onto a used car due to the exorbitant cost of repairs. Look at your last car repair bill on your Beemer, those parts are going up 150% with the new tariff.
Hopefully, this tariff won’t end up happening. But as it sits now, it looks like it will. Hopefully, there will be a loophole big enough to zoom a Maserati through it.
Recent Comments