Trump Administration Tariffs Could Boost Car Prices, Limit Choices

The Trump administration’s recently announced 25 percent tariff on myriad China-made goods-including vehicles-would add a levy of approximately $8250 to the price of a Buick Envision crossover. That’s 25 percent of the 2019 model’s $32,990 starting price. Whether that increase is reflected in full on the sticker price come July 6, when the tariffs are set to take effect, is totally up to General Motors. The automaker would not provide detail on any potential financial impact of the tariff; a spokesperson said the company is assessing the situation.

The Chinese tariffs could still be adjusted before July 6. But as it stands, the United States Trade Representative (USTR) is set to put the 25 percent duty on $50 billion worth of goods made in China, affecting industries ranging from aerospace to industrial materials but excluding more commonly bought consumer goods such as televisions and cellular phones. President Donald Trump has also threatened to pursue another $200 billion in tariffs on Chinese goods.

While China-sourced vehicles of all kinds are affected by the $50 billion in levies announced Friday, there remain few passenger vehicles sent from that market to the United States. The Envision is a primary example, but it isn’t one GM’s higher-volume vehicles. The automaker delivered 41,040 Envisions in the U.S. last year, compared with 290,458 units of the mechanically similar Chevrolet Equinox and 123,506 units of the larger Chevrolet Traverse. GM is building the Envision in China primarily for sale in China; it sold 210,000 Envisions there last year. (Such a tariff would hit slow-selling, China-built models such as the Cadillac CT6 plug-in hybrid and the long-wheelbase Volvo S60 Inscription-which start at $76,090 and $37,945-even harder.

Ford plans to build its next-generation Focus in China, and so far plans call for the eventual import of at least the Ford Focus Active to the States. In an emailed statement to Car and Driver, Ford said there has been no change to production and sourcing plans but also noted that it has yet to import any cars from China. “So, in the near term, we continue to urge both governments to work together through negotiation to resolve issues between these two important economies,” a company spokesperson said.


Much more: https://www.msn.com/en-us/autos/news/trump-administration-tariffs-could-boost-car-prices-limit-choices/ar-AAyYBdx



The administration has proposed tariffs of up to 25 percent on all vehicle imports; the China-built Buick Envision could see a penalty of more than $8000. Read more at Car and Driver. © Associated Press - Car and Driver