The ordinary American car buyer does not think of the source of the pieces that make its car, but the car manufacturers are considering it.
This is why a new round of car tariffs – this time on the cut – will be valid on Saturday (3) and can change the car manufacturers sector in the United States, even more than the previous rates of imported cars.
Since 1:01 am (Brazilia GMT) on Saturday, most of the United States are undergoing an import tax of 25 %.
The tariff of the front cars did not affect our made cars. It has changed. None of the 10 million cars produced by American factories last year were manufactured without at least some imported pieces. Diaspora parts on parts can mean tens of billions of dollars at new costs for the sector and eventually for US car buyers and owners.
“Frankly, in my view, the parts rates seem worse for the general economy than the customs tariff on imported vehicles,” said Jonathan Smok, President of Cox Motors, at the Press Association for Motors last week.
More than 50 % of the car content installed on American auto factories is imported, according to the government’s estimates. But prices will not apply evenly to all these imports.
For example, the parts of the Canadian or Mexican suppliers that pay its workers are $ 16 or more per hour “compatible” with the United States-Mexico-Canada agreement, a trade agreement that was negotiated during the first Trump administration. This means that most Canadian pieces are exempt from definitions, unlike the relatively few Mexican pieces.
Since last week, car manufacturers in the United States can compensate for part of the tariffs of parts, at least temporarily. The White House said that it will pay car manufacturers by up to 3.75 % of the price of the car compared to the parts in the first year, as it decreased to 2.5 % in the second year before it is gradually disposed of in the third year.
But even with the recovery of this amount, the additional cost of definitions can still reach about 4000 dollars per car, according to estimates derived from government trade data analysis.
Car buyers may take some time to achieve prices. Mary Barra, CEO of General Motors, told CNN on Thursday (1) that the customs tariff will cost its company between 4 billion dollars and 5 billion dollars this year, but it does not expect the prices of cars to change in the short term.
Jim Farley, CEO of Ford, told CNN on Wednesday (30) that he would extend the “employee prices” by July 4.
But ordinary Americans still see higher prices elsewhere, such as mechanical workshops.
Dukhan said: “The spare parts on the parts will lead to high inflation in repairs, maintenance and safe, which affects all Americans and not only people who are considering buying a new imported vehicle.”
There is no completely American car
The latest change in spare parts tariffs means that any car assembled in the United States with 85 % of parts according to the United States Free Trade Treaty) will be free of collective tariffs.
The problem is that it is unreasonable to fulfill this 85 % vehicle, according to the analysis of Frank Dubua, a retired professor in the college as the presence of American university works.
This is because car manufacturers have been operating for decades as if North America was one market, as frequent parts move through the American border with Canada and Mexico at low or non -existent prices.
Dubua said that the judgment on the national content could be difficult as well, as it reached small points such as the origin of oil and freezing.
In addition to $ 19.2 billion of imported Canadian components, most other imported pieces will not be exempt.
For example, Mexico sent $ 82.5 billion from parts to the United States last year, from afar the source of imported parts. But few of them are compatible with USMCA; Therefore, most of the attached rate will have.
If the current auto parts rates (and additional rates for Chinese products in general) are valid last year, the total price was about $ 60 billion. Even with the announcement of the payment rules last week, this amount will only decrease to $ 40 billion.
Smoke said, “Pay the pieces,” get a bad position and make it worse. “
Professor says there is a structural problem in the global economy
