25% Tariffs On Imported Passenger Vehicles And Parts        

President Donald J. Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on imports of automobiles and certain automobile parts, addressing a critical threat to U.S. national security.

• President Trump is taking action to protect America’s automobile industry, which is vital to national security and has been undermined by excessive imports threatening America’s domestic industrial base and supply chains.
• The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.
• Importers of automobiles under the United States-Mexico-Canada Agreement will be given the opportunity to certify their U.S. content and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content.
  • USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.
• The President is exercising his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports to protect our national security.
  • This statute provides the President with authority to adjust imports being brought into the United States in quantities or under circumstances that threaten to impair national security.

*Article from www.whitehouse.gov.

What does this mean for buyers right now?

If you are currently shopping for a Nissan vehicle, the good news is that all in stock vehicles are not subject to any tariffs and avoid increases in pricing. Adding to the good news, the manufacturer also has a great supply of inventory that is headed to dealers without any tariff affected prices.

What Should Buyers Expect Moving Forward?

While we have a good amount of inventory that are not affected by the tariffs, the supply is not unlimited. We expect that in the upcoming months, that pre-tariff inventory will eventually become scarce.

Milford Nissan Recommendations.

1.   If you are in the market to purchase a vehicle, do it sooner than later to have better availability. Avoid paying any additional price hikes and choose the exact vehicle you want.
2.   Perform any maintenance or repair on your current vehicle before the tariffs effect cost on parts.
3.   Stay informed with any updates and news with our team at Milford Nissan. We are here to help keep you informed on pricing, inventory, and any other questions you may have concerning tariffs.

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