How Automotive Tariffs May (Or May Not) Affect Classic Cars
The Trump administration’s tariffs on new automotive vehicles and parts are on the verge of having an impact.
The Trump administration has threatened vehicle and parts tariffs since early this year.
Trump has levied tariffs on imported vehicles as well as steel and aluminum. There have been delays but Aug. 1 is the next date where tariffs are to take full effect. Trump has delayed tariffs at various times this year.
Tariffs are paid by companies that import goods. Those costs typically are passed on to customers. Tariffs are not payments from one country to another.
At the same time, tariffs may have an effect on the collectible car market.
“Tariffs do not affect cars 25 year or older,” Steven Posner, CEO of Putnam Leasing, said in a recent interview.
However, one-fourth of the way through the 21st century, some collector cars may be affected. They include brands such as Ferrari and Mercedes.
“There’s a just a handful of collector cars that are hot in the U.S. market,” Posner added.
“I think it’s the law of unintended consequences,” he said. “It hurts the car broker or car dealer who’s interested in something post 2000.”
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