Trump Tariffs Could Slap 25 Percent Import Duty On Classic Cars And Parts

Companies that export new cars and new parts into the United States aren’t the only ones that will be affected by the Trump’s administration proposed auto and auto parts tariffs.

The classic car market, which is worth around $1.5 billion a year in the US, will become a collateral victim if exemptions for classic cars, trucks and motorcycles aren’t made.

Specialized insurer Hagerty Group warns that the classic car market isn’t restricted to wealthy collectors. The average classic vehicle’s value is under $35,000, meaning that most collectors are regular people who can’t afford to pay a 25-percent duty on a car import. 

According to a report from CBS News, the classic car market makes up about 5 percent of the total vehicle market. In the US, a car qualifies as a classic if it’s at least 25 year old.

Obviously, vintage car dealers and owners are displeased with the proposed tariffs, and some of them gave testimony last month at the Commerce Department asking that classic and antique cars be exempted from the planned import fees.

They argue that tariffs will hurt everyone from the upscale dealer to garage mechanics working on old cars because all of them need to import vehicles and parts to make a living.

Mark Hyman, who runs Hyman Ltd, one of country’s largest classic car dealerships, claims the protectionist trade practice “has a potential – and a probable – impact that’s dangerous, disastrous, catastrophic” for the specialized industry. For example, import duties on a classic car worth $1 million currently sit at about $25,000. When and if the tariffs go into effect, the owner will have to pay a $250,000 tax for the same car.

The President wants to impose a levy of up to 25 percent on auto parts as well, leading many people involved in the business to believe that would make tinkering too expensive for most classic car owners.

Auto parts for new, used and classic cars make up a big slice of the auto industry, with estimated annual sales of $392 billion each year. It employs about 4.6 million people across 530,000 businesses that include manufacturers, distributors, retailers and repair shops.

  • ▶️ ProtectOurHeritage ◀️

    So?

    • matrem

      Why should we pay more to stroke the moron’s ego?

      • LJ

        The point is we already pay more than we should.

      • ▶️ ProtectOurHeritage ◀️

        Trading fairly with other countries is stroking his ego? You’re hilarious!

        • Dave

          You think his ill-advised and misguided tariffs only effect our trading partners, and not millions of Americans as well? You’re hilarious!

    • Mr. EP9

      So you have to pay more to import classic cars and parts for them. Bad news if you’re in the restoration business.

      • ▶️ ProtectOurHeritage ◀️

        Wow, you don’t say! Upping US tariffs so they are equal to those of the EU will only encourage the EU to lower theirs. Short term pain. Long term gain.

        • Honda NSX-R

          Would the EU really lower tariffs after the US implements them, or would they just fold their arms and frown at the US and keep the tariffs the same? I don’t really know how the EU would react, they could even raise the tariffs. Who knows what will happen…

  • Honda NSX-R

    Bad news for those who were thinking they could get a RHD MKIV Supra for less money than the LHD ones 😛

  • Honda NSX-R

    Ok, so the chance of higher EU tariffs are pretty low. That’s cool

    • ▶️ ProtectOurHeritage ◀️

      The EU is highly unstable right now. Italy, Hungary, Austria and Poland all growing tired of the centralized undemocratic system. In economic terms, the EU isn’t even doing as well as Brexit Britain in terms of economic growth.

  • robotlogic

    Since I don’t own a foreign Classic Car I kind of don’t care that much.
    And maybe you should also mention that most other countries have ALWAYS
    charged a tariff on US made cars and parts to make us less competitive in their markets.

  • eb110americana

    A lot of aftermarket car parts are made outside of the US, in fact, most probably are. This means when you go down to O’Reily Auto Parts, Napa, Autozone, PepBoys, or order online from RockAuto, Amazon, or eBay, you should expect to pay 25% more. Even if you have an American car. That doesn’t bode well for *any* car enthusiast.

    • Thank you for explaining it to some close minded American readers.

  • EyalN

    who wrote this and put a corvette picture?
    you know that corvette is an american car?

  • ▶️ ProtectOurHeritage ◀️

    Why would people move their businesses and car collections to countries inside the EU? Taxes are astronomical and over regulation by the bureaucrats is stupidly out of control. No wonder the EU’s economy is doing so poorly!

    • Because you don’t get 25% tax for simply importing cars and parts. It’s pretty simple logic really. Look at eb110americana post down there, not only the collectors that are threatened, even the regular folks would have to paid whopping 25% more when they want to but spare parts for daily vehicle.

      • ▶️ ProtectOurHeritage ◀️

        Come back when you understand how tariffs work. 😂

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