Tariffs on classic Ferraris

ffs

 

The article makes a lot of good comments about unintended consequences.

However, the proper answer likely relies on a close reading of the new law that will be published in the Federal Register for the exact wording. I don't know if the applicable Federal Register covering that new regulation been published yet, but should be available soon, and certainly before the effective tariff date.

 

I bet the tariffs will be all inclusive. Then what will probably happen is that cars already in the US will trade for premiums in the US, and ROW cars will probably stick to being ROW while the tariffs are in place. At the values some of these classic cars go for, I think most people aren't willing to add 25% just to placate a president and his whims.

That's what happens when things are done....hastily.

 

This unthought out and hastily implemented policy has already killed the sale of two historic and very valuable Italian classics from the 50's.

 

"There’s one other factor worth noting, and that’s that the 2.5% duty that’s been charged by US Customs and Border Protection for many years is significantly lower than that charged by most other countries for imports; most European countries charge 10% plus low-rate VAT. This has long been a source of dissatisfaction for those exporting cars out of the US."

The EU is playing the victim card while cashing in.

 

.....and your point is.....?

 

I think it was pretty clear.

 

....no it is not, please expand.

 

EU has been charging 4x more than USA for same category of product. Now, one can make the point that very few europeans want US car at any price but the fact remains that it is not a fair relationship.

 

Warning: the "fairness" of tariffs is espousing a political opinion and is restricted to the P&R forum. The relevancy of tariff discussions for this forum relates to any potential market impact.

 

I can imagine buyers holding off. The tariffs won’t last. Imagine you pay 25% extra for a classic. And then the tariffs go away… btw. Vat is not the same is as tariff. The most important tax that’s charged is actually a specific tax based on pollution of the cars. Since a lot of Us cars use a lot of gas and have large engine, they become very expensive…

 

The way I have always understood such tariffs, it is on new products produced, not “antiques”.

I hate to put vintage cars into an “antique” category, but am I completely off track?

 

I hate all articles that start with COULD.

I'll wait for "Will" or "Won't"

 

Canada has already set a new 25 % tariff on cars that are coming from the USA. The law stipulates cars 25 years old and older will have this new tax. In the example given the $98,000 classic vehicle would have $46,000 in extra fees.

 

I don't know the details, but is it more semantics then? I already imported a couple 25 year old cars this year and paid 2.5% "duty" on each. I call it an import tax, but my import docs show the paid value in box 37 "Duty" and box 38 "Tax" is blank. Box 39 "Other" has port fees (499 - Merchandise Processing Fee and 501 - Harbor Maintenance Fee). This paperwork was done by Cosdel/CARS with PoA using my name as ultimate consignee (box 25) and importer of record (box 26) so presumably the best of the best and not scamming. But is a tariff really any different from Duty and Tax boxes? I don't understand the distinction between import tax, duty, and tariff if it applies to things based on age. I just know US Customs charged me and I had to pay...

Edit: This the form I'm looking at with what I was given by CARS. https://www.cbp.gov/sites/default/files/assets/documents/2023-Nov/CBP%20Form%207501.pdf

 

No. And you can tell that to yourself when you import something from the US and you have to pay about 30% of the purchase price including shipping. And it applies on everything with pretty much no minimum*

A US buyer importing your stuff pays at most 1/3 what you'd pay and there's an $800 minimum.

* Vat on classic cars varies across the EU. In NL it's 9% instead of the usual 21%, but it's still considerably higher than the US import tax.

 

Looking at the top line Gooding, RM and Broad Arrows sales in Europe its common to see notes that the lot is registered in Switzerland, on more expensive offerings. I assume a Swiss registered car can be temporarily imported on bond, not sure what the reciprocal use laws are though....

 

Yes, and you'd have to pay the bond to get the car.

Isn't the pollution tax charged when one registers the car, rather than when it's imported?

 

5%. Some cars of historic importance may be exempt.

 

Result is the same. The filing is done at almost the same time. The more gas the car uses, the higher the tax.