The tariffs of imported vehicles entered into force on Thursday, the policy that President Trump said would stimulate investment and jobs in the United States, but analysts claim to raise new car prices by thousands of dollars.
The 25 % obligation applies to all cars collected outside the US. From May 3, the tariff will also apply to imported automatic parts, which will increase the costs of cars assembled on both home and automatic repairs.
For cars made in Mexico or Canada, there will be a partial exception that meets the conditions of free trade agreements with these countries. Car creators will not have to pay obligations for parts such as engines, transmissions or batteries that were made in the United States and later installed in cars in Mexican or Canadian factories.
This provision will reduce the impact on vehicles, such as the Chevrolet Equinox electric vehicle, which is assembled in Mexico, but includes a battery and other components produced in the United States. General Motors will pay only a part of a car made abroad.
At the same time, the obligation to work will increase the costs of cars produced in Michigan, Tennessee, Ohia or other countries. This is because most cars that emerge from US factories contain components produced abroad and often make more than half the cost of the vehicle.
For example, about 90 percent of the value of some Mercedes-Benz cars produced in Alabama are, according to data compiled by the national road safety administration in Alabama in engines and transmissions from Europe.
The impact of tariffs on individual vehicles will be very different. Cars like Tesla Model Y, made in Texas and California, or Honda Passport, made in Alabama, have a high percentage of American parts and will pay lower tariffs.
The tariffs will be the highest for cars made abroad, such as Toyota Prius made in Japan or Porsche sports cars made in Germany.
Even people who do not buy new cars will be hit by tariffs because they will pay more for parts such as tires, brake pads and oil filters.
Michael Holmes, Head of Executive Director of Virginia Tire and Auto, a chain of automatic repairs and maintenance, said that he and his suppliers will initially try to absorb most of the increased costs.
“It’s not sustainable,” Mr. Holmes said. “It is magical thinking to think that businesses do not pass it on.”
Automatic tariffs could also increase the prices of used cars over time, they said that analysts by increasing demand for these vehicles, because new vehicles are inaccessible to many buyers. Insurance bonuses can also increase as repairs will cost more.
