Trump announces 25% tariff on all imported vehicles!

[Reducs]

Ok, so let's talk about oil weights. I think...

 

[bemax]

I never really understood the pricing of cars in the USA because of the difference in VAT in Europe and the USA. When prices of cars are compared in a German car magazine the price in the USA seem to be vastly lower than here in Germany. One reason is the tariff of 10 % the other is the VAT of 19% in Germany.
And here seems to be the biggest difference. This VAT is not a tariff for cars or goods from outside the EU but a tax payable by everyone who buys a car. it doesn’t matter whether it’s made in Germany, France, China or the USA.
The lower prices in the USA seem to be without the VAT. So German cars sometimes seem to be cheaper in the USA than here.
How does the VAT system work in the USA? Is it different from state to state?
Are there any other taxes you have to pay when buying a new car?

 

[landmannnn]

The US system has a sales tax, similar to VAT. It varies by state, between zero and 10%.

So for example an EU 100k car will be between 117k and 127k* in Europe.

A US produced car at 100k will cost between 100k and 110k in the US.

*Note that some European countries will levy ridiculous amounts of money on more expensive or polluting vehicles.

 

[255/85]

I never really understood the pricing of cars in the USA because of the difference in VAT in Europe and the USA. When prices of cars are compared in a German car magazine the price in the USA seem to be vastly lower than here in Germany. One reason is the tariff of 10 % the other is the VAT of 19% in Germany.
And here seems to be the biggest difference. This VAT is not a tariff for cars or goods from outside the EU but a tax payable by everyone who buys a car. it doesn’t matter whether it’s made in Germany, France, China or the USA.
The lower prices in the USA seem to be without the VAT. So German cars sometimes seem to be cheaper in the USA than here.
How does the VAT system work in the USA? Is it different from state to state?
Are there any other taxes you have to pay when buying a new car?

In general it varies from state to state unless there are federal taxes that supersede or are in addition to state taxes. An example is the state I live in where there is no sales tax per se (taxes are mostly levied via income and property assessment) but the state has added a surcharge to all new vehicle sales that is calculated as a percentage of the initial sales price. It amounts to a sales tax (or VAT) even though the state does not collect sales taxes across the board. Some states have a set fee or "tax" per vehicle. Some charge a fee as determined by established valuation of the vehicle whether new or used regardless of what the claimed value was. I have lived in states where cash deals were not required to be disclosed and many fees and taxes could be avoided.

It's important to remember that states here may not ignore federal regulation or violate federally granted rights or choose to not meet their federal (tax) obligations. States are subservient. They may grant additional benefits or levy additional taxes on their residents as determined by their respective state governing bodies. This fact seems forgotten by many.

And, of course, the union of states here was initially created to amalgamate power and thumb a nose at any one of a number of larger and more powerful European countries of the time. That process continued unabated for almost two centuries - roughly 175 years from founding to the inclusion of Hawaii as the 50th state. Those who live in glass houses...

 

[bikesandguitars]

Totally agree. I'm at a loss, why penalise Europe? What is the expected benefit of this?

Many manufacturers from Europe and Japan have invested heavily in the USA.

He has hit the wrong countries, he should have gone for China with a 50% tariff as China with their dumping policy (hugely subsidised cars) will kill the entire worlds car manufacturers.

The expected short-term benefit is to give Detroit and US automakers a slight advantage and hopefully, reinvigorate their sales numbers, hiring, etc., Michigan flipped for Trump and Trump made some promises to the auto workers. (Honestly, Detroit could use all the help it can get. I grew up there. It's fraction of what it was, to state the obvious.)

The long-term benefit is obviously to reinvigorate US manufacturing by twisting the arms of fast growing automakers like SAIC and Dongfeng (and INEOS) to build in the US rather than just dump their government owned and subsidized cars on the US market. SAIC has been rumored to be considering a US manufacturing presence. The tariffs may finally motivate them to act. SAIC is a behemoth. SAIC alone could flip a state's fortunes.

 

[DaveB]

I read today that Trump will not Tariff any UK cars. I has heard about this when At Notre-Dame Cathedral William gave a message from King Charles. The message was UK's dire economy. For respect to the dead Queen, no tariffs. They will work out the trade imbalance in another way. T.B.A. Watch it play out.

https://www.itv.com/news/2025-03-26/trump-announces-25-tariffs-on-all-cars-built-outside-of-us

So Mini, Rolls Royce, Bentley, Aston Martin and McLaren.
Apart from Mini all the others are only purchased by Millionaires and Billionaires.
How generous of Trump to save them some tax

 

[DaveB]

This has turned into a bullshit political discussion with a bunch of people who don’t live in the US critiquing the American system of government and the policies that Americans voted for. If you think our electoral college system is the problem then you are in fact the problem.

I huge lot of us Americans who pay the bulk of the taxes are sick and fucking tired of supporting the world and then hearing about how terrible we are. At least we still have our God given freedoms… well at least those of us who don’t life in Kalifornia.

No doubt a bunch of you hate Trump and that is your right but this is a damn automotive forum and frankly I don’t want to come hear and read about your political views!.

As for the 25% tariff… it won’t last. It’s a negotiation,

OK ....not political as requested, just plain curious.
I am always confused when I hear an American refer to their freedoms????
What freedoms do you believe you have that the rest of us don't???

 

[bikesandguitars]

OK ....not political as requested, just plain curious.
I am always confused when I hear an American refer to their freedoms????
What freedoms do you believe you have that the rest of us don't???

I want to answer this but I'm on my way to Walmart to purchase a semi-automatic firearm.

 

[Tazzieman]

I want to answer this but I'm on my way to Walmart to purchase a semi-automatic firearm.

So who's pissing you off? (or "prefer not to say")

 

[landmannnn]

OK ....not political as requested, just plain curious.
I am always confused when I hear an American refer to their freedoms????
What freedoms do you believe you have that the rest of us don't???

My understanding is the reference to the land of the free from the US national anthem.

Apparently this referred to being free from British tyranny.

Even though most of the USA was never under British rule.

 

[DaveB]

I want to answer this but I'm on my way to Walmart to purchase a semi-automatic firearm.

I have some doubts that you really are
I had a SIG226 and a CZ Shadow 2 in 9mm semi auto but sold them a couple of years ago because I wanted to go back to a good old 357 Magnum revolver.
I bought a new 4WD at the same time so was a bit tight for cash

 

[bikesandguitars]

So who's pissing you off? (or "prefer not to say")

Nothing in particular bothering me at the moment. I have militia practice next weekend and want to make a good impression.

 

[DaveB]

My understanding is the reference to the land of the free from the US national anthem.

Apparently this referred to being free from British tyranny.

Even though most of the USA was never under British rule.

I think you may be correct however it is amusing that they used the music from a British song.

 

[holdmybeer]

I want to answer this but I'm on my way to Walmart to purchase a semi-automatic firearm.

Overrated. Any decent Canadian city has places to buy semiauto rifles and handguns. Or mail order. It’s all legit. But I guess it’s not quite as free since firearms and cars and amateur radio a few other things require a license that’s cheap and easy.

Yes, full auto and some really cool models are prohibited here. But almost nothing stops a Canadian from acquiring immense and limitless amounts of powerful guns. If that’s your thing.

This stat surprises some … we have over 10M guns in our homes (legally) among a population of about 39M. We just don’t make a big deal of it and associate it with bravado or superiority.

 

[Tazzieman]

Nothing in particular bothering me at the moment. I have militia practice next weekend and want to make a good impression.

I've got too many possums raiding my garden . You can take them out. However, there is a risk of jail time if caught. You , not the possum!

 

[bikesandguitars]

My understanding is the reference to the land of the free from the US national anthem.

Apparently this referred to being free from British tyranny.

Even though most of the USA was never under British rule.

I think that is as good an answer as any. But as far as "freedoms" in the USA that other countries don't "enjoy", they're the privilege protected by the First and Second Amendment. Although, I use the word "enjoy" loosely as these privileges - specifically gun rights, free speech, religious freedom and freedom of the press - are the root cause of many disagreements in the US. They keep the lawyers busy! Freedom is messy.

 

[DaveB]

I've got too many possums raiding my garden . You can take them out. However, there is a risk of jail time if caught. You , not the possum!

When I first lived in Tasmania (Exeter) we had an old farm house with a row of pine trees as windbreaks down each side of the house.
Every night possums would jump down from the trees onto the tin roof and run across to the trees on the other side.
Back and forth.
I think there was about 400 of them from the sound.

 

[Shopkeep]

OK ....not political as requested, just plain curious.
I am always confused when I hear an American refer to their freedoms????
What freedoms do you believe you have that the rest of us don't???

The freedom to dye their cheese orange?

 

[DaveB]

The freedom to dye their cheese orange?

Yep....that is seriously weird.

 

[bikesandguitars]

Overrated. Any decent Canadian city has places to buy semiauto rifles and handguns. Or mail order. It’s all legit. But I guess it’s not quite as free since firearms and cars and amateur radio a few other things require a license that’s cheap and easy.

Yes, full auto and some really cool models are prohibited here. But almost nothing stops a Canadian from acquiring immense and limitless amounts of powerful guns. If that’s your thing.

This stat surprises some … we have over 10M guns in our homes (legally) among a population of about 39M. We just don’t make a big deal of it and associate it with bravado or superiority.

The fact that you just introduced the association of gun ownership with bravado and superiority means that you might associate gun ownership with bravado and superiority, or those feigning it. The facts are that most Americans own guns but never discuss them outside of hunting or sport shooting clubs. I know a lot of people. I served in an infantry unity in the US Army. I don't know anyone who brags about their guns.