What will happen if 20% tarrifs get imposed by Trump?
#1
AudiWorld Member
Thread Starter
What will happen if 20% tarrifs get imposed by Trump?
Do we think the German car manufactures like Audi have enough margin to eat some of it, rather than pass the 20% straight on, especially if they think it's temporary?
Perhaps they bundle more stuff in? I suspect the options are very high margins, and so they have more room to take a hit on a loaded Prestige than a base 2.0.
Are parts likely to go up as well? And if so extended warranty prices?
Perhaps they bundle more stuff in? I suspect the options are very high margins, and so they have more room to take a hit on a loaded Prestige than a base 2.0.
Are parts likely to go up as well? And if so extended warranty prices?
#2
AudiWorld Member
Do we think the German car manufactures like Audi have enough margin to eat some of it, rather than pass the 20% straight on, especially if they think it's temporary?
Perhaps they bundle more stuff in? I suspect the options are very high margins, and so they have more room to take a hit on a loaded Prestige than a base 2.0.
Are parts likely to go up as well? And if so extended warranty prices?
Perhaps they bundle more stuff in? I suspect the options are very high margins, and so they have more room to take a hit on a loaded Prestige than a base 2.0.
Are parts likely to go up as well? And if so extended warranty prices?
#3
AudiWorld Member
#4
Ultimate Keyboard Warrior
#5
AudiWorld Senior Member
Tough to predict the consequences.
I doubt though that this would save any consumer in the US a single penny - no matter if you buy domestic brands or not.
Perhaps Audi will do something similar like BMW does in Spartanburg - especially on models like the Q7: Building them right here in the US.
I doubt though that this would save any consumer in the US a single penny - no matter if you buy domestic brands or not.
Perhaps Audi will do something similar like BMW does in Spartanburg - especially on models like the Q7: Building them right here in the US.
#6
#7
AudiWorld Senior Member
Chaser: https://theindustryspread.com/market...tariffs-2/June 20, 2018 by DOW JONES INSTITUTIONAL NEWS 0 CommentsBy William Boston and Bojan Pancevski
BERLIN — Germany’s leading auto makers have thrown their support behind the abolition of all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to the brewing trade war.
The U.S. ambassador to Germany, Richard Grenell, brought the proposal for a broader industry trade pact to the Trump administration on Wednesday, according to people familiar with the situation.
That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump’s threat of imposing a 25% border tax on European auto imports off the table.
Now, that's what I call good negotiating! Hart to believe that this tariff imbalance was in place for so long without any push-back from the US...
BERLIN — Germany’s leading auto makers have thrown their support behind the abolition of all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to the brewing trade war.
The U.S. ambassador to Germany, Richard Grenell, brought the proposal for a broader industry trade pact to the Trump administration on Wednesday, according to people familiar with the situation.
That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump’s threat of imposing a 25% border tax on European auto imports off the table.
Now, that's what I call good negotiating! Hart to believe that this tariff imbalance was in place for so long without any push-back from the US...
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#9
It would mean our Q7s’ resale value could be pretty good if the Q7 starts at $60K for a 2.0L premium
Im not sure how I’d feel about Germans building cars in the US. I know many have been doing it for some time but aren’t foreign cars built in the US the ones with the worst reliability?
Im not sure how I’d feel about Germans building cars in the US. I know many have been doing it for some time but aren’t foreign cars built in the US the ones with the worst reliability?
#10
AudiWorld Senior Member
Another thing people have to realize in the US that the reason why US vehicles don't sell well in Europe (and Germany in particular) are NOT the tariffs. The US manufacturers simply don't offer vehicles that are attractive to the environment and circumstances in Europe. The average vehicle is simply smaller in Germany and has a better MPG-rating. No matter if there is a tariff or not, people won't be driving Dodge pick-ups or Grand Cherokee HEMIs in Germany's major cities (or anywhere, that is). If US manufacturers want to be successful over there, they either have to offer luxury vehicles that are technically top notch (like BMW, Mercedes or Audi) OR they have to offer smaller, green vehicles. What we have on our streets here in the US will NEVER make it to Germany 1:1. First of all, gas costs a fortune and big gas-guzzlers are frowned upon by society. Believe it or not, a vehicle like the Q7 would already fall into that category although it certainly isn't the biggest vehicle you can get in the US by any means.
Last edited by AudiFanFL; 06-24-2018 at 11:02 AM.