Joe said the real effect of tariffs would show up on less expensive cars.
"Over the past few decades, there have been high import duties in some areas of the world on cars, for example, and that market typically is not affected mostly in the premium car area. So tariffs will have an effect, we believe, on less expensive cars that are more price sensitive"
Reuters, Thursday: U.S. tariffs to also apply to Ferrari cars ordered months ago.
"Purchase contracts for Ferraris have clear and standard clauses allowing the company to adjust prices in case trade conditions change before the vehicle's delivery," the spokesperson said.
Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the U.S., with a higher 20% rate for the European Union, plus 25% tariffs on all imported cars and light trucks, starting next week.
Reuters, today: UK's Jaguar Land Rover to pause shipments to US over tariffs
To my mind, these don't qualify as "less expensive" cars. And based on the above "all imported cars," pricing didn't pricing factor into Trump's tariff equation. |
