By NYT News Service/Syndicate Stories
Tariffs on imported vehicles took effect Wednesday, a policy President Donald Trump said would spur investments and jobs in the United States but that analysts say will raise new car prices by thousands of dollars.
The 25% duty applies to all cars assembled outside the United States. Starting May 3, the tariff will also apply to imported auto parts, which will add to the cost of cars assembled domestically as well as auto repairs.
There will be a partial exemption for cars made in Mexico or Canada that meet the terms of free trade agreements with those countries. Carmakers will not have to pay duties on parts such as engines, transmissions or batteries that were made in the United States and later installed in cars in Mexican or Canadian factories.
That provision will reduce the impact on vehicles, including the Chevrolet Equinox electric vehicle, which is assembled in Mexico but includes a battery pack and other components made in the United States. General Motors will pay a tariff only on the portion of the car made abroad.
Read more at: https://www.miamiherald.com/news/business/article303384096.html#storylink=cpy
