Impact of President Trump’s New Tariffs on Ferrari Cars
On Thursday, a spokesperson for Ferrari announced that the Italian luxury automaker’s cars ordered months ago but not yet delivered to the United States will be subjected to President Donald Trump’s new tariffs. This announcement comes as a surprise to many, as the cars were ordered before the tariffs were imposed.
Background
President Trump’s new tariffs, which went into effect on September 1, 2020, impose a 25% duty on imported passenger cars, trucks, and SUVs from the European Union (EU), among other goods. This tariff is a response to the EU’s subsidies to Airbus, a European plane manufacturer, which the World Trade Organization (WTO) ruled as illegal.
Impact on Ferrari
Ferrari, which is based in Maranello, Italy, is one of the many EU companies affected by these tariffs. The company has announced that it will absorb the costs of the tariffs for cars that are already in the United States or have been ordered before the tariffs were imposed. However, cars that are still in the production phase or have been ordered after the tariffs went into effect will be subjected to the new duties.
Impact on Consumers
The new tariffs will undoubtedly lead to higher prices for Ferrari cars in the United States. The company has not yet announced how much the tariffs will add to the price of its cars. However, it is safe to assume that the costs will be significant, as Ferrari cars are already expensive.
Impact on the World
The new tariffs are not just affecting Ferrari; they are also having a ripple effect on other industries and economies. European carmakers, such as BMW, Mercedes-Benz, and Volkswagen, are also facing higher costs due to the tariffs. This, in turn, is leading to job losses and economic uncertainty in Europe.
Conclusion
President Trump’s new tariffs on imported passenger cars from the EU have caught many by surprise, including Ferrari. The Italian luxury automaker has announced that cars ordered before the tariffs were imposed but not yet delivered to the United States will be subjected to the new duties. This will lead to higher prices for consumers and economic uncertainty for European carmakers and their employees.
- President Trump’s new tariffs on imported passenger cars from the EU will apply to Ferrari cars ordered months ago but not yet delivered to the United States.
- The tariffs will lead to higher prices for Ferrari cars in the United States.
- European carmakers, such as BMW, Mercedes-Benz, and Volkswagen, are also facing higher costs due to the tariffs.
- The tariffs are leading to job losses and economic uncertainty in Europe.
