America’s plans for 25% tax on cars and parts shelved Fears of a 25% tariff being imposed on classic cars and parts imported to the US have been alleviated.
President Donald Trump proposed the tariff in May of this year, citing potential threats to national security and the economic welfare of the US automobile and automotive parts industries. It was assumed in the industry that it would elicit a tit-for-tat response. St Louis high-end classic car dealer Mark Hyman said, ‘If the tariff is increased, other countries will probably raise tariffs in retaliation. That could cause the market to break down.’
All this led to testimony to the US Department of Commerce on July 18 by a selection of market representatives, citing the threat to what is, in the US, a $180bn industry. Meanwhile action was being taken. David Magers, CEO of Mecum Auctions, said, ‘We have a large motorcycle collection coming out of Sweden that will go to our motorcycle auction in Las Vegas. That auction doesn’t take place until January, but Mecum is working to get those bikes onto a boat now in case tariffs are raised.’
However, on July 25, a week after the representations to the United States Department of Commerce, President Trump thankfully backed of from his 25-per-cent tariff threat after a three-hour meeting with European Commission President Jean-Claude Juncker at the White House. Trump hailed, ‘A new phase of trade relations.’
The shockwaves of Trump’s proposed measures would have reverberated globally.