Unless you’ve been living under a rock, you’ve heard the controversy and conversation about tariffs and trade wars. Here at Velocity Mazda, we’re leaving the controversy to the politicians and focusing on what matters most to East Texans.
New car prices have already climbed steeply in the past decade, with Mazda being one of the few brands that still produces good looking, dependable, fun to drive vehicles for under $30,000. Recent trade wars could drive prices even higher.
Tariffs Already Causing Price Hikes
Back in February, the White House placed tariffs on washing machines and solar panels. If your washer and dryer goes out and you want a Samsung or LG, The Wall Street Journal says their cost has increased by 17 percent the last few months. Solar panels already cost between $500 and $1,000 more to install.
Tariffs on steel and aluminum kicked in June 1. That raises the cost of things you buy every day like soup and canned soda, but only marginally. However, cars contain much more steel and aluminum than your afternoon energy drink.
New Vehicle Prices Will Rise
The 25 percent tariff on steel and 10 percent tariff on aluminum drives up manufacturing costs. Even vehicles assembled in the US have parts made abroad.
The National Highway Traffic Safety Administration says not a single 2018 vehicle sold in the US gets all of its parts from inside the country. That means the tariffs will impact every vehicle manufacturer from Ford to Jeep to Kia.
Currently most the news on tariffs concerns imports from China. There is also the threat of a 20 to 25 percent tax hike on imported vehicles across the board. USA Today said those tariffs could add $5,000 to the price of a new $32,000 vehicle.
What Mazda Says
At the end of June, Mazda issued a statement on the potential 25 percent tariff on imports that said, “A tariff is a tax and it will be paid by American consumers. It will significantly increase the cost of every new vehicle sold in America, regardless of where it is built.” Mazda filed its comments on behalf of the 32,000 American workers who work at Mazda dealerships across the U.S.
Most Mazda vehicles are currently built in Hiroshima, Japan. Mazda’s North American Operations is in Irvine, California.
Mazda and American Jobs
Last year Mazda and Toyota announced they were building a $1.6 billion car plant in Huntsville, Alabama. The two companies predict the plant will open in 2021, make around 300,000 cars a year and create 4,000 jobs for Americans.
The plant will produce the same superior value products, affordable luxury and jaw-dropping style you’ve come to expect. Because the cars are manufactured domestically, they will not be subject to import taxes.
What East Texans Should Do Now
At Velocity Mazda, we always offer the best available price on new Mazda and high quality used vehicles. That’s never going to change. We can’t predict what will happen in global trade, but in the year ahead, vehicle prices very well may increase across the board.
You may have missed the best price on washing machines, but you don’t have to miss out on currently low vehicle prices. Today is the best time to buy your new Mazda. Check out our online inventory or stop by today.
Sources:
https://jalopnik.com/gm-and-mazda-say-that-trumps-tariffs-are-going-to-cost-1827247669
https://www.usatoday.com/story/money/2018/07/03/car-prices-trump-auto-tariffs/745342002/
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