{"id":24800,"date":"2024-12-03T10:00:53","date_gmt":"2024-12-03T10:00:53","guid":{"rendered":"https:\/\/www.etags.com\/blog\/?p=24800"},"modified":"2024-12-03T15:00:11","modified_gmt":"2024-12-03T15:00:11","slug":"the-new-tariffs-what-they-could-mean-for-the-automotive-world","status":"publish","type":"post","link":"https:\/\/www.etags.com\/blog\/the-new-tariffs-what-they-could-mean-for-the-automotive-world\/","title":{"rendered":"The New Tariffs: What They Could Mean for the Automotive World"},"content":{"rendered":"

Hello and happy December, folks! \u00a0Tis finally The Season: to be jolly, to eat, drink, and be merry, to snag those lingering Black Friday deals, and to look forward to all the end-of-season and holiday sales that are just about to start popping up in little shops, massive malls, and of course, online.<\/p>\n

Obviously, we would be remiss if we dared leave out the deals descending upon the automotive world.\u00a0 Cars, trucks, and SUV\u2019s see their fair share of Tis the Season Sale Madness too. (Yes, we capitalized it and made it official!) All those TV commercials with a shiny new ride wrapped up in a gigantic red bow \u2013 we know\u2026a new vehicle can be the ultimate holiday gift. Even if you happen to be gifting that gift to yourself – it counts.<\/p>\n

\"Gift<\/p>\n

Turns out though, that this year, this season might be the best chance you have of snagging a terrific price tag on the car of your dreams.\u00a0 You see, there\u2019s a chance that several auto manufacturers could see a significant downturn when it comes to importing their vehicles to the U.S.\u00a0 Which means that showrooms could also suffer from a marked reduction in the choices and inventory available.<\/p>\n

But, ugh, right? Weren\u2019t we just recovering from those dismal years of automotive famine?\u00a0 Aren\u2019t we just getting back to full showrooms and ever-so-slightly better price tags?\u00a0 What could possibly throw a wrench into the car-buying world again so soon?<\/p>\n

Well, there seems to be a proposed tariff that our president-elect plans to levy on goods imported from Mexico and Canada.<\/p><\/blockquote>\n

And by tariff,<\/a> we mean an extra hefty twenty-five percent fee on imports.\u00a0 And while that may not seem like a number that could break the bank for an imported shirt or a pair of glasses, it would be hugely impactful on something the size and cost of a vehicle. This comes in addition to the extra ten percent tariff promised on goods imported from China.<\/p>\n

\"Tariffs\"<\/p>\n

So, if these new tariffs actually do go into effect \u2013 in his last term, Trump spoke of a five percent tariff on all things imported from Mexico, but never put this threat into action \u2013 how would it impact the automotive world? In many ways actually.<\/p>\n

A considerable number of vehicles manufactured by both European and American companies rely heavily on Mexico and Canada for their production.\u00a0 Volkswagen, for example, maintains one of its largest factories in the city of Puebla, Mexico.\u00a0 It is there that they build several different models for the specific purpose of exporting them to the U.S.\u00a0 Those very popular vehicles include the Jetta, the Taos, and the Tiguan.<\/p>\n

And what exactly would more than 84,000 potential buyers do if they could no longer get their hands on their beloved Jeep Compass?\u00a0 In 2024 alone, that\u2019s the ballpark number of folks who purchased that vehicle. And perhaps a similar number of people might suffer the disappointment of an inflated price or even limited stock in the coming year, because the Jeep Compass is manufactured in Mexico.<\/p>\n

\"Factory<\/p>\n

And what about the 179,000 buyers who chose the Ram pickup truck as their ride of choice this year? Well, if they\u2019ve already gotten their hands on their truck, they\u2019ll be okay.\u00a0 But the potential customers, the people who have been considering the Ram might have to reconsider. They too would be affected by this Mexican-manufactured vehicle import tariff.<\/p>\n

It\u2019s not just Mexico that would bear the burden of the proposed tariff.<\/h2>\n

Canada as well would see the twenty-five percent levy, thus impacting their manufacture of both the Chrysler Pacifica and the Dodge Charger.\u00a0 That\u2019s over 59,000 potential minivan buyers and over 21,000 sedan buyers who could face lower inventory and much higher costs.<\/p>\n

In addition to the Volkswagen, Jeep, Ram, Chrysler, and Dodge vehicle plants that exist in the countries threatened with the tariff, both GM and Ford have got a decent presence in these places as well. The latter two U.S. automotive giants manufacture electric powertrains and assemble EV\u2019s in Mexico and Canada.<\/p>\n

So what would all these carmakers have to do in order to avoid getting slapped with the hefty tariff?<\/p><\/blockquote>\n

Well, they\u2019d have to move out of Mexico and Canada. Which would mean a number of very big changes. Either they\u2019d have to build brand new plants Stateside, or they\u2019d have to completely revamp existing (albeit defunct) factories to meet modern technology, tool, and manufacturing requirements.<\/p>\n

\"\"<\/p>\n

They would also need to transport all the goods that have already been made from our border countries into the U.S., which is no small feat: the machinery, as you can imagine, is neither small nor light.\u00a0 And we can\u2019t forget the human element in all of this. Entire teams of workers would need to be hired and trained in the States.<\/p>\n

Now, here at eTags we\u2019re not really into scare tactics or bad news. In fact, we don\u2019t much care for either.\u00a0 And there\u2019s a good chance that Trump\u2019s intention of levying these tariffs against Mexican, Canadian (and Chinese) imports may never come to fruition.\u00a0 If the outcome of the extra cost and vehicle scarcity is of any truth, we can only hope that our president-elect reconsiders.<\/p>\n

However, forewarned is forearmed.<\/h2>\n

So, if you were maybe considering buying one of the aforementioned vehicles, now might be a great time to do so.\u00a0 With the Tis the Season Sales going on this month versus the possibility of an impending rise in cost, December might be your moment to take action.\u00a0 Of course, this is also hedging bets, because no one (not even we) can predict the future.\u00a0 But we\u2019re hopeful and optimistic!<\/p>\n

\"Car<\/p>\n

And if you do decide to buy a new ride and you find yourself in need of title and tag services, well, we\u2019re your guy. Or gal. Or both.\u00a0 Head on over to our dandy site,<\/a> choose your state from the drop-down menu, and let us guide you through whatever service you require. Because as always, here at eTags, we\u2019re here to help!<\/p>\n","protected":false},"excerpt":{"rendered":"

Hello and happy December, folks! \u00a0Tis finally The Season: to be jolly, to eat, drink, and be merry, to snag those lingering Black Friday deals, and to look forward to…<\/p>\n","protected":false},"author":20,"featured_media":24805,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1762,39,1],"tags":[],"class_list":{"0":"post-24800","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-automotive-news","8":"category-cars","9":"category-uncategorized"},"acf":[],"yoast_head":"\nThe New Tariffs: What They Could Mean for the Automotive World | eTags - Vehicle Registration & Title Services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etags.com\/blog\/the-new-tariffs-what-they-could-mean-for-the-automotive-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The New Tariffs: What They Could Mean for the Automotive World\" \/>\n<meta property=\"og:description\" content=\"Hello and happy December, folks! \u00a0Tis finally The Season: to be jolly, to eat, drink, and be merry, to snag those lingering Black Friday deals, and to look forward to…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.etags.com\/blog\/the-new-tariffs-what-they-could-mean-for-the-automotive-world\/\" \/>\n<meta property=\"og:site_name\" content=\"eTags - 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