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25% of tariffs on all cars that enter through the borders of the United States. That is the last major measure announced by Donald Trump that, if nothing changes, will enter into force on April 2. A new economic decision that has evident winners and losers.
How does Spain affect you?
25% tariffs. It had been rumored for a long time and Donald Trump has ended up confirming it: the United States will tax with 25% tariff to all cars that enter through its borders. If the car has been manufactured outside the United States, the importer will have to disburse 25% more through the car.
The announcement has a small print that was later clarified by the White House, they collect in The country. For cars manufactured within the economic space of Canada-Mexico-United States (which have a special treaty) only the tariff will be applied to the pieces that are not produced in the United States, which should partially mitigate the norm.
The latter is important since it is estimated that tariffs will raise the purchase cost of a car in the United States between $ 4,000 and $ 10,000 Since half of the cars bought in the country come from abroad and, from those assembled there, 60% of the components are also manufactured outside their borders, they point out in Motorpasion.
And a threat. “If the European Union collaborates with Canada to economically harm the United States, they will be imposed on a large -scale tariffs, much greater than expected, to protect the best friend that both countries have had,” Donald Trump threatened in words collected by The country.
The words of the president of the United States are a notice for a European Union that had threatened to reactivate tariffs that were already in force during Donald Trump’s first mandate and even go one step further, as reported The New York Times.
Germany is especially vulnerable to US policies. It is the country that exports the most cars to the United States. According to Bloombergin 2024 they exported 446,566 cars worth 24,800 million dollars. In addition, its main manufacturers produce a good part of the cars that sell in the United States in countries such as Mexico or Canada. So, 80% of cars that Volkswagen sells in the country come from outside the United States. Mercedes does the same with 63% of its cars and BMW with 52%.
What about Spain? According to the Data from the Department of Commerce collected by The country. Spain only exported 8,316 light vehicles that added a value of 178.5 million dollars. Both figures are, obviously, minimal if we take into account those that we have been renovating previously.
According to Observatory of Economic Complexity (OEC)the main shipments from Spain to the United States represented Volkswagen and Ford. Despite this, those 178.5 million dollars contrast with the more than 8,000 million dollars that Spain exports in cars to France or Germany, the main markets for the Spanish industry.
Small and European. If the Spanish industry will not suffer with the tariffs raised by Donald Trump it is because the cars we manufacture here are focused on the European market. Most of them are Compact and utilitarian vehicles of relatively low prices that are manufactured in Spain because the labor is cheaper and, therefore, allows to better adjust the benefits margins.
The data pointed out that Ford was one of the most affected companies in Spain because it produced in Almussafes (Valencia) the Ford Transit Connect. This vehicle was exported to the United States because it was used as a taxi in New York. However, It does not occur since 2024.
To this we must add that the country has been taking positions in recent years to reposition its industry in the electric car. And production plans for this type of cars also indicates that They will be small carsdestined for a European public.
Consumers. So far we have talked about the industry but, obviously, a European response will touch sectors outside the car. While in the United States half of the cars that are bought are manufactured outside the country, only 12% of cars imported to Europe come from the United States, According to Acea.
If Europe decides to respond by raising more commercial barriers to the cars that come there, the main damaged will be the Tesla Model S and, above all, the American sports models such as the Ford Mutang or the Chevrolet Corvette. Models that, like the Ford Broncothey arrive at droppers and are especially expensive to compensate for the European Emissions Standards.
Therefore, if the European Union decides to answer we can expect an increase in the prices of other products. For example, it was already valued to impose Harley-Davidson motorcycles.
Photo | Stellantis
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