Automatic rates enter into force, exerting pressure on the prices of new cars

Tariffs in imported vehicles entered into force on Thursday, a policy that President Trump said he would stimulate investments and jobs in the United States, but that analysts say that new cars prices will increase in thousands of dollars.

The 25 percent service applies to all cars gathered outside the United States. As of May 3, the rate will also apply to imported automatic parts, which will be added to the cost of assemblies assembled nationwide and car repairs.

There will be a partial exemption for cars carried out in Mexico or Canada that comply with the terms of free trade agreements with those countries. Automobile manufacturers will not have to pay tasks in parts such as engines, transmissions or batteries that were made in the United States and then installed in cars in Mexican or Canadian factories.

This provision will reduce the impact on vehicles such as the Chevrolet Equinox electric vehicle, which is assembled in Mexico, but includes a battery and other components made in the United States. General Motors will pay a rate only in the car made abroad.

At the same time, the duty of pieces will increase the cost of cars manufactured in Michigan, Tennessee, Ohio or other states. This is because most cars that leave the US factories contain components made abroad, often ascending to more than half of the cost of the vehicle.

About 90 percent of the value of some Mercedes-Benz cars manufactured in Alabama, for example, is found in engines and transmissions that are imported from Europe, according to data compiled by the National Highway Traffic Safety Administration.

The impact of rates on individual vehicles will vary widely. Automobiles such as Tesla Model and, manufactured in Texas and California, or Honda Passport, manufactured in Alabama, have high percentages of parts made in the United States and will pay lower tariffs.

Tariffs will be higher in cars manufactured abroad, such as the Toyota Prius made in Japan or Porsche sports cars manufactured in Germany.

Even people who do not buy new cars will be affected by tariffs because they will pay more for parts such as tires, brake pads and oil filters.

Michael Holmes, executive co -president of Virginia Tire and Auto, a chain of automobile repair and maintenance stores, said he and his suppliers initially try to absorb most of the increase in costs.

“That is not sustainable,” said Holmes. “It is a magical thought to think that companies will not happen.”

Automatic tariffs could also increase the prices of uses used over time, analysts said, increasing the demand of these vehicles, since the new ones become unseakivable for many buyers. Insurance premiums can also increase because repairs will cost more.