Will tariff on imported vehicles impact your purchasing plans? [WARNING: NO POLITICS; JUST POLICIES TALK]

[MarsGeo]

I realize there are bigger problems facing the world than the cost of a new 4Runner increasing by $10-20k, but will it influence your purchasing plans?

in my case, I’m second on the waiting list for a TRD PRO. Even if I decide to pay the extra ~$18k upfront ($90k+taxes/fees for a vehicle that now costs $72k+t/f), that $18k paid in import duty will vanish if the tariffs are later eliminated. In that case a new TRD PRO 4Runner will again cost $72k, and I’ll be holding a used one for which I paid $90k.

As much as I was looking forward to the Fox QS3 shocks on a new TRD PRO, a 25% tariff will likely convince me to hold on to my 2014 5th gen—with all my DIY weekend projects: Sonoran Steel lift/suspension kit, hidden winch mount I welded myself, drawers, skid plates, and AGM battery circuitry.

 

[zesh]

I thought I saw something about there being a 1-year runway before going into effect. Could be mistaken, but I doubt anything will happen in the immediate term.

 

[CrispyTacoLover]

I realize there are bigger problems facing the world than the cost of a new 4Runner increasing by $10-20k, but will it influence your purchasing plans?

in my case, I’m second on the waiting list for a TRD PRO. Even if I decide to pay the extra ~$18k upfront ($90k+taxes/fees for a vehicle that now costs $72k+t/f), that $18k paid in import duty will vanish if the tariffs are later eliminated. In that case a new TRD PRO 4Runner will again cost $72k, and I’ll be holding a used one for which I paid $90k.

As much as I was looking forward to the Fox QS3 shocks on a new TRD PRO, a 25% tariff will likely convince me to hold on to my 2014 5th gen—with all my DIY weekend projects: Sonoran Steel lift/suspension kit, hidden winch mount I welded myself, drawers, skid plates, and AGM battery circuitry.

If the 25% tariff goes into effect, I have no doubt the prices will halt a lot of purchases.

 

[DustyLens]

I can wait four years if necessary.

 

[Dead Horse]

If that happens, I won't buy anything.

 

[Positronic]

I realize there are bigger problems facing the world than the cost of a new 4Runner increasing by $10-20k, but will it influence your purchasing plans?

in my case, I’m second on the waiting list for a TRD PRO. Even if I decide to pay the extra ~$18k upfront ($90k+taxes/fees for a vehicle that now costs $72k+t/f), that $18k paid in import duty will vanish if the tariffs are later eliminated. In that case a new TRD PRO 4Runner will again cost $72k, and I’ll be holding a used one for which I paid $90k.

As much as I was looking forward to the Fox QS3 shocks on a new TRD PRO, a 25% tariff will likely convince me to hold on to my 2014 5th gen—with all my DIY weekend projects: Sonoran Steel lift/suspension kit, hidden winch mount I welded myself, drawers, skid plates, and AGM battery circuitry.

ya i'm also pretty low on the list for a TRD Pro, if the price jumps up 25% on what i consider an already steep ask i wont be picking up a new 4Runner for sure.

 

[Henry]

Likely (and hopefully) negotiating tactic to get concessions from trade partners, like what happened with Mexico and Canada.

 

[Darthstrukt]

There won’t be issues trading with Japan. They plan to build here and in return (since Japan has always proven to be a great ally post WW2) they won’t be subject to the same tariffs other countries will have to endure.

 

[detamble13]

There won’t be issues trading with Japan. They plan to build here and in return (since Japan has always proven to be a great ally post WW2) they won’t be subject to the same tariffs other countries will have to endure.

I wouldn't be so sure Japan will be exempt. The plan for tariffs changes with the wind and if he feels like it Japan will also be subject to them. I can't see how Japan has been a better ally than any other friendly country the US has trade relationships with.
The Japanese yen was devalued for a long time and gave them an advantage on the world stage. The bubble burst in the 90s. They are a great ally as a buffer between US and China but autocratic leaders are looked at more favourably these days so who knows.

 

[Darthstrukt]

I wouldn't be so sure Japan will be exempt. The plan for tariffs changes with the wind and if he feels like it Japan will also be subject to them. I can't see how Japan has been a better ally than any other friendly country the US has trade relationships with.
The Japanese yen was devalued for a long time and gave them an advantage on the world stage. The bubble burst in the 90s. They are a great ally as a buffer between US and China but autocratic leaders are looked at more favourably these days so who knows.

https://english.kyodonews.net/news/...sh-for-tariff-exemptions.html#google_vignette

I expect things will move on favor of our alliance with Japan. They are very passive to our demands and for good reason.

 

[brumey]

Maybe Toyota will pivot and manufacture 4runners in the USA?

I doubt any imminent impact to buyers. However, if my bottom line increased more than $2k, I’d not buy.

 

[LLL1990]

I thought I saw something about there being a 1-year runway before going into effect. Could be mistaken, but I doubt anything will happen in the immediate term.

If he imposes tariffs they will go into effect immediately.

Likely (and hopefully) negotiating tactic to get concessions from trade partners, like what happened with Mexico and Canada.

They didn't concede to anything, they repeated what their positions were concerning increasing border security that they already agreed too. He backed down because they also imposed massive tariffs on the U.S. For example, Canada imposed tariffs on oil and gas passing through Canada in the Alaska pipeline that would drastically increase fuel and gas costs in the U.S.

There won’t be issues trading with Japan. They plan to build here and in return (since Japan has always proven to be a great ally post WW2) they won’t be subject to the same tariffs other countries will have to endure.

Toyota already manufactures the RAV 4, Camry, Corolla, Highlander, Tundra, Tacoma, Sienna and Sequoia in the U.S. As of now Trump has not excluded any country from the 25% tariff.

Tariffs are bad news for consumers. If he imposes the 25% tariff the price of a 4R will go up 25%. Imposing a tariff on a country will only make that country retaliate with tariffs of their own. The only tariff policy that makes sense is a reciprocal policy that basically states whatever tariff you have on us will be applied to you. If you have a 25% tariff on American cars then we have 25% on yours. If you have no tariff on us then we have no tariffs on you.

 

[4WheelBugout]

If a 25% tariff goes into effect, it does not mean a 25% increase is slapped onto the 4runner specifically. Toyota and any brands affected will actually average out the 25% across their entire product line. So even the vehicles made in USA will go up in price to avoid the full tariff being applied to 1 or 2 models, but that means less increase for the 4runner. Even though I have a deposit on an SR5 I wont buy it if price goes up at all, it's just too ridiculous.

 

[ModernDay4Runner]

If a 25% tariff goes into effect, it does not mean a 25% increase is slapped onto the 4runner specifically. Toyota and any brands affected will actually average out the 25% across their entire product line. So even the vehicles made in USA will go up in price to avoid the full tariff being applied to 1 or 2 models, but that means less increase for the 4runner. Even though I have a deposit on an SR5 I wont buy it if price goes up at all, it's just too ridiculous.

I am not doubting you, but I am curious to learn how you know that is how Toyota would average out the 25% across their entire product line. It seems you are saying on some vehicles it will be more than 25% and on others, less than 25%, to get to that 25% average.

Is that how tariffs have worked in the past with automakers?

 

[DustyLens]

But won't the seller have to increase the prices by 33% overall in order to pay the 25% while maintaining the same income?