US President Donald Trump has again taken a hard line on automotive tariffs. The latest move is a 25 percent tariff on all cars and parts not built in the United States. Per the official announcement from the White House, it seeks to "eliminate the threat to the national security of the United States by imports of automobiles and certain automobile parts...." Because the 25-year-old R34 Skyline you're jonesing for is a security threat.
It's worse than that, though. Japanese Nostalgic Car reminds us that JDM imports under the 25-year rule are already subjected to a 2.5-percent import tax. That ups the ante to 27.5 percent. But the real gut punch comes with minitrucks like the Daihatsu Midget, Subaru Sambar, or little vans like the Honda Street. Thanks to the decades-old 25-percent Chicken Tax on light trucks and vans, these vehicles will be hit with a 50-percent fee all-in. And since these are used vehicles, there won't be a manufacturer offsetting costs. If you want a Mitsubishi Mincab, you'll just have to eat the expense.
Now, it's not all doom and gloom just yet. Among other things, we've already seen Trump waffle on tariffs multiple times. This one, tied to an executive order, feels a bit more permanent. Trump added during yesterday's announcement that it would be "100 percent" in effect for his entire four-year term. But perusing the tariff press release, it's filled with language that could provide all kinds of exceptions to the rule. That includes various qualifications relating to the United States-Mexico-Canada Agreement (USMCA). For the purposes of this post, we find this section rather interesting:
"The Secretary [of Commerce] shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the increase in duty rate provided for in this proclamation is no longer necessary."
In other words, the Secretary of Commerce can, at any time, declare that a 2000 Mitsubishi Lancer Evo VI Tommi Makinen Edition is not a threat to national security and recommend the 25-percent tariff be removed.
In a post on its website, Toprank International Vehicle Importers, one of the largest importers in the US, advised customers that the tariff "will significantly increase the cost of importing vehicles into the United States." Toprank Director Sean Morris further shared his thoughts in an Instagram post.
"We’ll just have to see what happens moving forward," he said. "Obviously it’s sort of a big deal for the market and for people who import cars, and obviously for anybody who’s looking to buy a car that’s new or used."
This is all set to take effect April 2. At this point, what happens on April 3 is anyone's guess.
