Donald Trump pull straight on duties carnet of some adjustment during the work. From 3 May they entered into force in United States The new duties of 25% on engines, changes and other components imported for cars.
The major rates are part of the broader protectionist policy of the Trump administration, aimed at relaunching internal industrial production. But not only that: the duties, as is evident, are also a negotiating tool.
Duties as a pressure tool
The US automotive sector is strongly dependent on imports: 60% of the components and almost half of the vehicles are imported.
In the previous days, President Trump has signed an executive order that temporarily attenuates the impact of the new measures, introducing reimbursement for car manufacturers that produce and sell in the USA, up to 3.75% of the value of the car.
Cars with at least 85% of components produced in the USA are exempt from duties. Part of the Trump match, played in the light of the sun, is precisely to increase the production volumes on American soil, so as to stimulate the labor marketand not only.
But the new duties risk increasing i production costsi retail prices and the expenses for repairs. Some companies, such as General Motors and Mercedes, are evaluating production expansions in the USA, while others, such as Stellantis, have suspended financial forecasts due to instability. Analysts warn that, despite recent softenings, political uncertainty and volatility make new long -term investments risky. In short, the duties create the conditions most feared by financial analysts and by those who draw up the corporate business plans: theuncertainty.
Who earns with the duties
If for some the duties are a funeral stumbling block, for others they represent an opportunity. With the duties, at least in the short term, i car manufacturers with plants already started In the United States, which can access reimbursements of up to 3.75% and can circumvent the rates if they respect the 85% share of Made in the USA components. But, as is evident, the suppliers of American components that with the increase in imports see the opportunities increase for those who produce locally. The competitive advantage is twofold: on price and on timing supply.
Those who risk losing, or are already losing, are the car manufacturers that depend on global supplies. There are many manufacturers who assemble cars in the USA using imported components (over 50%). General Motors has estimated an impact of 5 billion dollars in the annual costs. US consumers could be called to bear higher costs, equal to at least 1% on the final price of the car. Repairs and insurances could also cost more. Finally, the exporting countries, such as South Korea, Mexico, Canada and Japan among many others, suffer a blow to the supply chain and see exports to the USA.
Trump on recession
At least temporarily, Trump also gains since the application of the duties strengthens his image of defender of national production: part of theelectoratepart of the industrialists and part of the union world. Everything is, however, in overcoming the test of the markets also in the light of the possible increases announced in the medium-long term: “This is a transition period. I think we will go great”, but “everything can happen”. So said Donald Trump to the microphones of the NBC News. The question was inherent in the possibility that the US slip into the recession Following the war of the duties. The stars and stripes economy has already recorded one contraction in the first three months of the year.
