The impact of tariffs on coupe owners

Ohmess

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I thought I would start a discussion on the impact of the Trump Administration's tariff rule changes on coupe owners. I know this will engender some political commentary, but I am hoping the thread will accumulate enough substance to be useful. If not, it likely will quickly disappear.

I've done a lot of work with taxes, including excise taxes on goods imported into the US, but I am not an expert on tariffs. I suspect those who import a lot of product to the US (e.g., @sfdon) will know a lot more about this, and hope they can add to this based on their experience.

Unfortunately, the US Harmonized Tariff Schedule of the United States was last updated on March 12, so we don't have the actual rules to work from. Accordingly, we have to look to news releases from the White House to figure out what is going on.

I've looked at the Fact Sheet from the March 26 order dealing with automobiles and auto parts (https://www.whitehouse.gov/fact-she...-and-automobile-parts-into-the-united-states/), and my reading is this won't have much of an impact on us as coupe owners. The 25% rate on parts is to be applied only to "key automobile parts (engines, transmissions, powertrain parts, and electrical components)." This does not appear to apply to most repair and maintenance parts coupe owners buy. It also does not appear to be applicable to most parts needed to do a restoration (fenders, bumpers, etc.). Here again, we don't have the actual rules so this conclusion is subject to change.

The change that I do see having a big effect on us comes from yesterday's announcement concerning the de minimis exemption applicable to shipments from China. https://www.whitehouse.gov/fact-she...nas-role-in-americas-synthetic-opioid-crisis/. Presently, an exemption of $800 applies on shipments directly from China to the USA, and sellers on both ebay and Amazon use this exemption to market Chinese products directly to US customers without paying tariffs. The announcement ended this exemption for products made in China as of April 2, 2025. An example of where this may apply is the purchase of a remanufactured Bosch alternator. If you acquire a Bosch remanfactured alternator from a seller on ebay, you are buying a Chinese part because Bosch does virtually all of its alternator remanufacturing in China. Another example is knock off tools from Amazon. For years Amazon has been contracting with Chinese manufacturers to create knock offs of items with good sales volumes on their platforms, so you can readily find knock offs of Milwaukee tool batteries that look just like Milwaukee batteries on Amazon at a significant price discount.

The announcement on de minimis shipments states that the postal service will be collecting these tariffs, which means sellers won't be able to sent them without paying the tax. It also states that commercial shipping companies will be liable for the tax, and they are very likely to ensure the tax is collected and paid, which means they too will collect these tariffs from sellers prior to moving their packages.

Given how suddenly this change is being implemented, I suspect we will see shortages of some repair and maintenance parts (and knock off tools as well). Those companies making Chinese knock off stuff that lack the financial capacity to eat the tariffs will simply disappear. And it will take a while for companies like Bosch to relocate their alternator remanufacturing facilities to a lower tariff jurisdiction. So, if you need an alternator rebuilt, you will likely need to seek out the local automotive electric guy, assuming he is still in business.
 
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The announcement on de minimis shipments states that the postal service will be collecting these tariffs, which means sellers won't be able to sent them without paying the tax. It also states that commercial shipping companies will be liable for the tax, and they are very likely to ensure the tax is collected and paid, which means they too will collect these tariffs from sellers prior to moving their packages.
So the postal service will collect on the sending side (China?) or the receiving side (US).
When I shipped some goods to Holland (Gopro gear) the recipient had to pay the tax man upon receipt, no burden on the sender other than declaring the value of the goods.
 
Good write up Chris. More of us will look locally for shops that can rebuild starters and alternators.
I found one fairly close to home and had 2 alternators rebuilt.
 
So if Stan's experience becomes more commonplace, while these tariffs may hurt some overseas businesses and our wallets, they could have a positive impact on our local businesses. As noted, the positive shift would take quite some time and the ultimate question is: Will it be worth it?
 
So if Stan's experience becomes more commonplace, while these tariffs may hurt some overseas businesses and our wallets, they could have a positive impact on our local businesses. As noted, the positive shift would take quite some time and the ultimate question is: Will it be worth it?
If the US is consistent about tariffs, yes. If people perceive that the tariffs are a negotiating ploy to get other countries to lower theirs, then it won't. If people believe the pendulum will go back to no tariffs in the next administration, there may not be a shift. That is why the investments announced by TSMC, Hyundai, Softbank may have staying power but those of a local alternator rebuild shop may not.

Back in February I visited a friend in Uruguay going through the sad liquidation of a three generation textile factory, selling machines to scrap, paying severance with the proceeds of the plant, sending people to unemployment. They were a huge brand once but the numbers have not been working for many years due to Chinese imports. Huge building, 1MWatt of power, their own water, their own steam, decades worth of know how, look at the gears they made on their own to service the machines.
Economists may say retrain the workers to be software developers, sure. Wait until economists lose their jobs to ChatGPT.
 

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Arde - good catch on the exemption for 25 year old cars (I am stunned at how fast they got these rules published).

As to your question about the sale into the EU, the tax collected from the buyer was probably a VAT, which the Europeans expect to have to pay on imports. There are situations where tariffs are collected from the buyer - I know I paid tariffs collected by the shipping company on a group buy of strut bars from a UK seller a few years ago -
but the government doesn't want to be in a position of collecting thousands and thousands of small dollar tariffs from buyers. Hence, the de minimis rules. I don't think there are de minimis rules for VAT on imports from the US into the EU.

The Administration is pushing the postal service and shipping companies to collect the China tariffs arising from eliminating the de minimis rules for sales from China so as to consolidate the collection point for the taxes. (They do this for lots of other taxes. For example, alcohol and tobacco taxes are levied when taxable goods leave the bonded warehouse, which is usually a facility where taxable goods are aged prior to sale.) And, of course, where the seller pays the tariff, this makes it more difficult to pass along the cost of the tariff to the buyer.

I noticed both Volkswagen and Mercedes Benz have stated they are going to separately state the new tariffs on their cars sold into the US, so as to attempt to pass along the new tariffs to US consumers (and, of course, to emphasize to buyers that the new tariffs apply).
 
I noticed both Volkswagen and Mercedes Benz have stated they are going to separately state the new tariffs on their cars sold into the US, so as to attempt to pass along the new tariffs to US consumers (and, of course, to emphasize to buyers that the new tariffs apply).
Indeed, I am looking at a VW Taos for my wife. and tariffs would apply as the content is dominated by Mexico, other models may have at least 75% US content and would not be subject to any tariffs. VW is saying the cars that already in transit in the US would not have tariff applied.
 
I asked Ivo after the sale of his Malaga coupe to report back to me the ACTUAL tariff effect (if any) on that sale of the Malaga Coupe. Everyone seems to have different theories and sources so I wanted to hear if from the horse's mouth (no disrespect to Ivo, just a dumb American saying).

He is very well known in this community and I have known him for a while. He said, "absolutely" he will let me know when all is said and done what actually transpired. Keep in mind the Malaga coupe he sold is a little unique in that it was a CA car, sent to them to refurbish, and a beautiful job they did, but it DID have a CA title to go with it. Not all Euro imports (vintage in particular) will be able to claim that. But based on that car alone, I will let you all know his feedback. So basically, stay tuned. If I don't report back in like a week, someone remind me to contact him please. Then on top of that, things are changing w/ tariffs by the minute it seems based off of what transpired today.
 
Two things, I think the 25+ year tariff issue is settled. No tariffs, so Ivo's Malaga is ok no matter what.
SFDon reported the impact on parts, and just as I thought the real issue is with China, and it looks like tariffs are off for non China sources and up for China. Unfortunately the tariff differences are so large that we will see a whole industry of Chinese goods labeled as coming from elsewhere, not pretty. Like the fake extra virgin Italian olive oil from olives that are not Italian. I see Elliot Ness type enforcement may be needed to deal with counterfeiting and smuggling.
 
Arde - surely you jest about Elliot Ness enforcement. DOGE has slashed the departments that would worry about counterfeit products (except US currency). you also have to think about the laws of other countries - for instance, you can bring furniture or other items into Italy, repackage it / put stamps on it and sell it as Italian. the only caveat is that it has to land in Italy. i also know the first Trump tariffs on China, furniture companies sent their products to Vietnam and sold them to the USA. some of the American furniture companies moved furniture production to Vietnam and other places - sending all of the milled pieces and just assembled them out of China.
 
Oh totally agree, when you have such a tariff differential it is impossible to fight and it shifts human energy into non-productive activities like smuggling and origin faking. I have lived in times in places where I had to do unnatural things to buy a table tennis blade from Japan, or buy a Chivas Regal for an occasion and find out it was filled with tea... I prefer freedom including trade.
I mentioned Elliot Ness as a colorful character of a dark era.
 
oeps, that will be less business at Wallothnesch ?
Don't know how much import tax you guys payed up till now ?
The other way around , here it is ( was ? ) 31%.... restoring my C2 the last years i bought for approx $20k parts in the US ... + 31% ....:mad:
 
I think one of the negotiations that the Trump team want from all of theater nations is to call out when a Chinese company is setting up shop in their country so that the tariffs continue to be applied to that specific product. But...I might be wrong.
 
I think one of the negotiations that the Trump team want from all of theater nations is to call out when a Chinese company is setting up shop in their country so that the tariffs continue to be applied to that specific product. But...I might be wrong.
Of course. But the Italian olive oil example shows that it is about the origin labeling, which most times is done without even setting up shop. Maybe packaging, maybe transit, who knows. People were laughing about tariffs on islands with just penguins, I think its was meant to close that door. I was dead wrong on the car parts, car tariffs are still on... Oh well, my son believes in not owning cars and riding Ubers...
 
Oh totally agree, when you have such a tariff differential it is impossible to fight and it shifts human energy into non-productive activities like smuggling and origin faking. I have lived in times in places where I had to do unnatural things to buy a table tennis blade from Japan, or buy a Chivas Regal for an occasion and find out it was filled with tea... I prefer freedom including trade.
I mentioned Elliot Ness as a colorful character of a dark era.
WTH is a table tennis blade from Japan? Sounds like a Ninja sword wielding ping pong player!
 
WTH is a table tennis blade from Japan? Sounds like a Ninja sword wielding ping pong player!
High level players (like I aspired then to be) assemble their paddles out of blades and rubber they buy separately.
Stiga blades (from Sweden) combined with Yasaka rubber from Japan was the equivalent of an E9 CSL.
There was a black market for excellent Butterfly paddles (used, smuggled) but I could never procure the Stiga Yasaka, and I blame that for my mediocrity :).
 
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