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Tariffs on Cars Imported into the USA

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Old 05-26-2018, 05:09 AM
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Default Tariffs on Cars Imported into the USA

Good Morning Jaguar Economists,

My F-type is sitting at the port of Baltimore USA. More on that topic can be found here:
https://www.jaguarforums.com/forum/f...-entry-200919/

It is sitting there waiting for:
Government compliance , regulatory, legal, and multiple other departments within JLR.
The USA government compliance makes me think of tariffs that the current president wants. I don't know when a tariff is applied to a product.

An F-type, for example can be found:
  • in the UK
  • on a ship sailing from the UK to the USA
  • in a USA port
  • on a truck from that port to a Jaguar dealer
  • in my garage

Question: If an automobile has made it to a USA port of entry and then a tariff is created a week later, does that tariff apply to that automobile because it has not departed from the port and been sent to the dealer?

Regards,
Bill
 
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Old 05-26-2018, 05:56 AM
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That depends on whether it has cleared the customs process. If it has and the car is sitting in a Jag impound, then no worries. If it's sitting in customs impound, the taxes will be applied based on the date it clears customs. I suspect your car has already cleared customs.
 
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Old 05-26-2018, 06:12 AM
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Hi Unhingd,

I hope my post didn't wake you.

I didn't think about the customs aspect.

Today I might go to a few foreign car dealers like Land Rover, different location than Jaguar, and maybe Porsche and pose the same question to them.

Thanks for the info,
Bill
 
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Old 05-26-2018, 07:39 AM
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Originally Posted by Bill.
Hi Unhingd,

I hope my post didn't wake you.
Not at all. There's only one profession that can make any money in bed.
 
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  #5  
Old 05-26-2018, 08:24 AM
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Old 05-26-2018, 03:28 PM
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Hi Bill, we are in the same boat and I share your worries... my F-Type is being built or about to ship (scheduled for delivery on 6/22). I suspect a few others are worried as well (I know KarimEls is waiting for his car just like us)... let us know what you find out! I know my wife would kill me before I pay an extra 25% on this car (she asked me this very morning what my plan B was!).

Let’s all keep our fingers crossed.
 
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Old 05-27-2018, 02:25 PM
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Hi Brock,

Check out my timeline here: Yesterday, my wife and I visited the local Porsche dealer and then the local Mercedes dealer to talk about tariffs. Neither knew exactly what would happen. I think they felt whatever would happen would not happen in the next month. One of the dealers said that congress had to vote on tariffs but the following says no, the president can make the decision: Yesterday, my wife asked me about "Plan B". If this F-type deal falls through there is a 99% chance that we will replace our Honda Civic with a crossover, probably not an E-Pace or F-Pace.

Bill
 
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Old 05-27-2018, 06:39 PM
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If there is any interest in a new 2018 vs a potential tariff, the dealership where I purchased mine this month has ten 2018's in stock.

Two are R coupe (BRG and Corris), 2 are 400 Sport (both Santorini verts), and 6 are 380hp coupes (BRG, Corris, 2 Santorini, Ultra Blue, Yulong).

The incentives this month were strong. If you NY guys find it compelling (they are located in an adjoining state), PM me and I'll introduce you to the GM. I've purchased 4 vehicles there over the last 5 years and found them to be very fair and quite professional to work with.

I hope you guys land an F Type. I've owned a number of domestic and imported performance vehicles (cars, bikes, and trucks). The F Type has a spirit all its own!
 
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Old 05-28-2018, 11:29 AM
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As an importer, all of my products clear customs before the ship docks. If not the ports would be overloaded with product having to wait in bond.
 
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Old 05-28-2018, 05:46 PM
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Not to sure what tariffs are in your country but here in Ireland we have to pay a VRT (vehicle registration tax) on the car. This is a tax added to the car as revenue for the government on registration. It is in the total price at the dealer for the car. A F-type 2.0 list price here is around €78,000, the V6 cost a further €30,000 on top. In the Uk the difference between the 2.0 and the 3.0 is just around £2,000. As you see that is some difference due to the tax, Ireland is the only country in Europe that this applies to. If i was to import a car from any country, the government assess the price of it and then charges a import charge also called VRT at 34%, then if you buy the car in a different currency it might cost you more.

The example below is if i imported a 2015 from the UK, the government gets €20,000

https://www.ros.ie/evrt-enquiry/vrte...execution=e5s3
 

Last edited by powerhouse; 05-28-2018 at 05:49 PM.
  #11  
Old 05-28-2018, 11:34 PM
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will prices jump 25% because of the tariff only? I would think that if a manufacturer did this suddenly sales would plummet... wouldn't they absorb some of it?

Also it's just in the investigation phase for now
 
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Old 05-29-2018, 03:43 PM
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Last Saturday I sent the following question to Jaguar USA via their website:
If an automobile has made it to a USA port of entry and then a tariff is created a week later, does that tariff apply to that automobile because it has not departed from the port and been sent to the dealer?
They responded with:
I regret to advise we are unable to assist you with this inquiry. Jaguar Land Rover does not participate in an Import/Export Program and therefore is unable to assist in any transportation inquiries.
I wondering, if "Jaguar Land Rover does not participate in an Import/Export Program", then who is responsible for the cars at the Baltimore USA port?

Confused and still waiting for my F-Type,
Bill
 
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Old 05-29-2018, 04:52 PM
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Originally Posted by Bill.
Last Saturday I sent the following question to Jaguar USA via their website:

They responded with:
I wondering, if "Jaguar Land Rover does not participate in an Import/Export Program", then who is responsible for the cars at the Baltimore USA port?

Confused and still waiting for my F-Type,
Bill
Looks to me like they are saying that "Your sale is already executed as it has ALREADY been exported from there & imported here so your costs won't change". You are just waiting for them to RELEASE your purchase. Naturally, your dealership is the only logical place to confirm expectations.

As I understand this, your vehicle is NOT being held due to anything related to "tariffs" but rather is being held up due to governmental emissions standards so these really are two separate issues but can't blame you for wondering out loud here on this forum if your dealer is being mum
 

Last edited by ndabunka; 05-29-2018 at 04:55 PM.
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Old 05-31-2018, 04:47 PM
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Hi Bill,

Here is a piece of news that should make you feel good: “the US Department of Commerce will conduct its public hearing on the issue of tariffs on imported cars on July 19-20”. See https://www.reuters.com/article/us-u...-idUSKCN1IU271

You should be driving your F Type by then (hopefully, so will I).
 
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Old 05-31-2018, 06:01 PM
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If they really go through with this can US manufacturers at least try and produce a credible alternative to European brands.

I need to trade in my Range Rover soon and really don’t want to get an Escalade / Navigator. They aren’t even close on quality and design.
 
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Old 06-03-2018, 11:38 AM
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" Government compliance , regulatory, legal, and multiple other departments within JLR. "

This generally means things other than tariffs. Trump policies have gotten a lot of visibility and has made international trade regulations knee jerk into more immediate scrutiny. This statement usually means either it is going through the process pre, or post customs which entails too much to post here. Or, it means there could be a paperwork discrepancy that requires JLR cooperation. I have found internal cooperative actions to take some time, as every given 8 hour shift there are deliveries that require escalation.
 
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Old 06-04-2018, 11:15 AM
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My dealer reached out (and I didn't even call him first, my how times have changed!!!! haha) he said my car is on track to reach early to mid July!!! It's been such a long wait, I'm almost numb at this point, but then again Yeeeeeeaaaaaaaaaaaaahhhhhhhhhhhhhhhhhhh!!!!! So can't wait for this car.

 
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  #18  
Old 06-04-2018, 03:52 PM
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Hi KarimEls,

My F-Type coupe supposedly landed in the Baltimore USA port on 5/2. Last week My dealer said she hoped it would be here in June.

Question: What port is your F-Type at?

Patiently waiting,
Bill
 
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Old 06-04-2018, 05:15 PM
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Originally Posted by KarimEls
My dealer reached out (and I didn't even call him first, my how times have changed!!!! haha) he said my car is on track to reach early to mid July!!! It's been such a long wait, I'm almost numb at this point, but then again Yeeeeeeaaaaaaaaaaaaahhhhhhhhhhhhhhhhhhh!!!!! So can't wait for this car.

It still amazes me that one could take possession of the 2019 model in the middle of 2018. Just seems insane but I guess it's an inevitable result of vehicle manufacturers manipulating the system. At this rate, we will be getting 2020 cars by February 2019 & then mabye we can even start getting 2021 cars before the 2019 year end. Crazy
 
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Old 06-04-2018, 06:52 PM
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Originally Posted by ndabunka
It still amazes me that one could take possession of the 2019 model in the middle of 2018. Just seems insane but I guess it's an inevitable result of vehicle manufacturers manipulating the system. At this rate, we will be getting 2020 cars by February 2019 & then mabye we can even start getting 2021 cars before the 2019 year end. Crazy
Actually, by November 2017, as KarimEls, a few others and I can testify, it was too late to order a 2018MY... pretty amazing indeed.
 
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