Yesterday, March 26, President Donald Trump announced sweeping tariffs on car imports and imported car parts. The tariff calls for 25 percent tariffs to be applied to “all imports” of vehicles as specified by the order, to be applied on April 3. Some parts will also see a 25 percent tariff. While the biggest immediate impact will be on new vehicles and parts, a huge question mark remains about used cars. What’s going to happen with your beloved over 25-year-old dream car in Japan or Europe? If the tariffs go ahead as written, your dream imported classic car might now be even more unattainable.
Alarm bells went off in the car importation world yesterday after the White House published “ADJUSTING IMPORTS OF AUTOMOBILES AND AUTOMOBILE PARTS INTO THE UNITED STATES” to its Presidential Actions page. President Trump has been talking about his desires for several kinds of tariffs, including car tariffs, for a while. Tariffs have been such a huge part about the President’s political identity that there’s a whole Wikipedia page dedicated to the tariffs from Trump’s first term.
It’s not that surprising to see this new round of tariffs. A lot of folks in the car importation world, myself included, are still buying cars knowing that the tariffs might happen. But now that they are here, there are still questions that, thus far, nobody seems to be able to answer with any real clarity. The biggest question in the car import world right now is: How will this impact importing used cars?
The Tariffs
This question comes because of the wording of the Proclamation. In it, President Trump says:
On February 17, 2019, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks (collectively, automobiles) and certain automobile parts (engines and engine parts, transmissions and powertrain parts, and electrical components) (collectively, automobile parts) on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (section 232). Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that automobiles and certain automobile parts are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.
The document then meanders through explanations about trade negotiations, national security, and the COVID-19 pandemic. If you’re looking at that sweet over-25-year-old car in Japan or Europe, the part that matters most to you happens next, emphasis mine:
Except as otherwise provided in this proclamation, all imports of articles specified in Annex I to this proclamation or in any subsequent annex to this proclamation, as set out in a subsequent notice in the Federal Register, shall be subject to a 25 percent tariff with respect to goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 3, 2025, for automobiles, and on the date specified in the Federal Register for automobile parts, but no later than May 3, 2025, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated. The above ad valorem tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported automobiles and certain automobile parts articles.
Shortly after this announcement, the JDM car importing community erupted into a bit of a panic. Japanese Nostalgic Car, a publication dedicated to the JDM community, warns, “Get your JDM dream car now, because a 25 percent tariff is coming.” Car and Driver sounded a horn a week ago, saying, “U.S. Tariffs Might Make JDM Imports More Expensive.” Some importers are even announcing the bad news, with Vistec R Imports publishing its own announcement last night.
But there was also plenty of confusion. The White House also published a Fact Sheet about the new tariffs, and it says:
The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.
While the main proclamation says “all imports,” neither document distinguishes between new and used vehicles. Based on my reading of the proclamation, the “all imports” bit suggests that it’s a sweeping tariff that will be applied to all imported vehicles, not just new ones.
Last night, I reached out to a few of my import, export, and broker contacts. All of them were pretty frank, telling me that the only information that they have is the same two documents that I’m looking at here, and their interpretations are the same as my own. If the tariff goes ahead as written, it should mean duties to be imposed on all imported cars, not just new ones.
I also spoke with my wife, who is an attorney with over a decade of litigation experience. Her interpretation of the documents agrees with mine.
Still, nobody really knows the exact specifics for sure, but the assumption is that, yes, your dream car is about to get about 25 percent more expensive. That said, President Trump may even change these tariffs, too, so it’s hard to say anything definitive until the tariffs start happening. My importer contacts weren’t willing to give out any statement on the record for this reason.
What This Means For Enthusiasts
If the tariffs go live as expected and hit used car imports, here’s what the tariffs would mean for you.
As of right now, a classic car that you import from Japan is already subject to import duties. Something like the 1997 Honda Life that I bought would normally be subjected to just a 2.5 percent import duty. Imported trucks, like an adorable Kei truck or something bigger like an Isuzu Elf, get hit with a 25 percent import duty thanks to the infamous Chicken Tax.
Here’s the kicker: If the new tariffs go live on April 3, they will not replace existing duties but add to them. So now the typical vintage car import will now cost you 27.5 percent while trucks are levied 50 percent.
If your chosen ride is a Kei vehicle, the duty won’t amount to much. I paid $258 for my Honda Life. Normally, this car would cost me just $6.45 in import duties. Now, the duty will amount to $70.95. That’s not much dough at all.
It’s not even that bad for Kei trucks, either. Say you buy a nice Kei truck for $1,000 in the auction system. Your import duty will be $500. That’s not great, but also just $250 more than what you were going to pay before.
Sadly, the real kick happens when you add all of your costs up. In 2021, I was able to load two Kei cars onto RoRo ships for about $900 each. My new-to-me 1997 Honda Life will cost around $1,700 to ship today, or nearly double. So, if you’re like me and got into the importing game within the past few years, you’re probably not stoked to be paying more for shipping and now to pay even more in import duties.
So, the good news here is that if you’re importing a Kei car, you’re usually talking about increases of small sums of money. My Honda Life should still cost me around $3,500 before I load it onto a trailer and haul it home. That shouldn’t break the bank!
Some prominent U.S.-based dealers are known to list their JDM cars for a price that is roughly double of that of what it would cost you to import equivalent cars yourself. Even if these dealers increased their prices by 25 percent to cover the tariff, Kei trucks and cars should still remain cheap.
What won’t be cheap are the JDM legends. I’m talking about the Honda NSXs, Nissan Skylines, and Mitsubishi Lancer Evolutions. The values of these cars have already skyrocketed, pricing several enthusiasts out. But now, these cars could get so expensive that they’re unattainable for everyone but the rich enthusiast.
I’ll use the Honda NSX for an example. Here’s a 1991 NSX with 69,982 miles that I chose at random on the Goonet Exchange. It costs ¥8,112,100 or $53,774. That’s the price the seller says will get the car loaded onto a boat and headed to the United States.
The closest comparable I found is a 1991 Acura NSX with 65,000 miles that sold on Bring A Trailer in November for $66,000.
To calculate your new import duty, you’ll need to take your vehicle’s value and times that by 0.275. That covers the existing 2.5 percent duty plus the 25 percent tariff. Now, Goonet packages shipping into your purchase price. For this example, let’s say your purchase price is a nice and even $50,000. Your import duty is $13,750, bringing your price to $63,750. Now, throw on the price of shipping it to an American port, and you’re already at the price of an equivalent Acura NSX before you load it into a trailer. At that point, you might as well just buy the American NSX and save yourself the hassle.
Of course, if your chosen JDM car doesn’t have an American equivalent, you’re left either paying the 25 percent duty or hoping a dealer in the States has one for a decent price. It’ll be even worse if you’re importing a car from Europe, where you already have to deal with an unfavorable exchange rate on top of higher shipping prices before you then might get hit by the tariff.
In short, if you’re buying cheap cars in Japan or elsewhere and the tariff hits used cars, your car would get a little more expensive. If you’re buying high-dollar cars or are running an import dealership, your costs might take a huge spike, and that could happen almost overnight. One importer in a group chat I’m in says he has 20 cars at a port in Japan right now and wasn’t expecting the tariffs. There’s no way those cars could make it to America in time, so he’s hoping used cars will be exempt.
Sadly, as of publishing, it’s still not really known for sure what will happen. But if the tariffs go live as written, it’s safe to assume that your favorite imported car will get 25 percent more expensive. That’s a darn shame and it makes me sad to think of how many enthusiasts will now be priced out of their dream cars.
I called it.
But what’s the good news? I see nothing good in this.
The Trump Taxes will cost you money.
Not if you don’t buy these items with increased costs.
If you participate in the same economy you will pay. The plumber’s truck costs more, he raises prices, etc.
Except that if it costs 25% more to fix your car, your insurance company will be raising rates to compensate.
Fuck Trump. This is irritating because I have been saving to try and buy a type r and then I have to deal with this shit on top of greedy ass dealers marking them up. Unfettered capitalism is a fucking joke and it is sad to see it absolutely kill the common man.
Trump’s Taxes are the opposite of unfettered capitalism.
The argument is that they only exist because of unfettered capitalism.
How can government actions be an effect of unfettered capitalism?
Because the tariffs aren’t regulations that lay out rules to capitalism, they are just economic tools used for any type of system. They essentially just put the cost on the consumer. If there were regulations governing the companies that sent the jobs overseas we wouldn’t be in this mess. Capitalism has run rampant for years and tariffs aren’t even a bandaid at this point. They are straight up pointless and do nothing but cause pain to the common man. I am not against capitalism as a system. It just needs regulation or it turns into the shit show we have now where we have a moron who is trying to solve the problem with a ineffectual solution. You can’t regulate after the fact, it just doesn’t work.
All unforced errors driven by delusional ideology. I imagine that Ladas will be excluded. Who knew that somebody who was capable of bankrupting the-house-always-wins casinos would manage to tank the economy? Moron.
Prices going up? That’s just tariffic.
It’s not one of my customs to levy a penalty against comments of no import, I might even pay them some dues, but, even if this sounds like a bit of a liability, it’s my duty to charge you with taxing my patience. Please excise that pun.
I’m bummed because a $5000 van gets a $1250 tariff on top of the 2.5% import duty. My Mazda Bongo Friendee dream may be deferred. I’ll be meeting a JDM import guy next Friday so I will inquire
Well, that makes my decision to either restore the GSi or import something else much easier.
Are you sure the tariff is calculated just based off of the “raw” invoice/sale price of the cars? Some countries calculate tariffs adding the car’s value plus the shipping cost when the car arrives at the port.
And I hope motorcycles won’t be caught up in this.
At least here in the USA, the duty is based only on purchase price, not purchase plus shipping. That said, some importers will give you a bill that includes a “duty” that is calculated based on shipping. That is not correct, but it happens, and I do wonder where the extra money goes..
Keep holding those ankles tight. You also need to account for the around-the-corner $1,000,000 to $1,500,000 landing fee for any shipper that owns a Chinese-built cargo ship for every port that they stop at in the US. That works out to about $600 – $800 per 40-foot connex. We are winning so much, it hurts.
Thankfully, my car’s going onto a RoRo and my fee should come out to be much less than that nonsense. But yeah, ship your car in a container and you’re in for a bad ride.
The lack of clarity in all of this is just fucking maddening.
It’s a feature, not a bug.
Two big factors in the lack of clarity. One, POTUS is saying things off hand and promising details later. It sucks as we’re all left guessing. Two, the media rather than reporting what the actual changes are instead report on whatever parts of the changes they want to fit their opinion of the President. One side only tells you the bad, the other only tells the good. Just give us all the details!
So..the other end of this is that even if the tariffs are removed at a later date the retail prices of goods will tend to remain high.
Oh, and this also drives up prices of used cars by shifting the market to perceived “values”.
Price increases (I did not say inflation because that’s not really what this is) tend to be very sticky. Retailers/dealers are typically loath to actually reduce prices even when their costs have gone down.
We are living through an economic experiment run by people who have very ideologically driven thought processes. That has not generally worked out well in the past.
That’s the very charitable interpretation of this. The one I think is more likely is pure greed – Trump was elected with the help of a whole lot of very rich business owners, who are now going to take advantage of that sticky price hike you mentioned to make billions more dollars after the tariffs go away.
Don’t forget that the consumers are the biggest controlling factor. If things cost too much, we’ll stop buying them. Then the market will have to adjust. Most people don’t need to buy new cars. But all car makers need us to buy their cars. They’ll figure it out or else.
I wonder which non-US brand is going to open MORE plants in the US with this very stable new administration within the coming 3-4 years.
Everything could be reversed when a new president comes in, the tariffs could be reversed in the next 4 years, it could never be implemented, they could be lower, higher – there is no certainty. If I was a foreign brand I’d say “We’re going to build a plant in the US” – if they didn’t already have one, to release the tension. Whether they will actually do that and when … will be the question.
If I was a foreign brand I’d do totally nothing to see where the world is going, because right now it is going to shit. Trade only works with consumer confidence and right now that confidence is shattered. Perhaps people in the US think everything is going great but if you check ANY news (left/right/center) from outside the US you will see nobody is going to take any action any soon and ppl aren’t going to spend any money (on US products) neither.
Expect some very interesting international trade figures after ’25 Q1.
I’m all for balanced trade and a lower national debt, so the US pays less interest, but the deficit isn’t really CAUSED by the trade deficit, but due to massive overspending in other areas, from healthcare, social security to defense. Overspending by paying too much for poor quality services and goods. Unbalanced. Why are big pharma and hospitals so expensive? Why do we spend a TRILLION dollars per year on the military? It’s great DOGE cuts a billion here and there but we need literally to cut hundreds of billions PER YEAR for a decade to get the national debt to maintainable / sustainable levels.
And if we actually did cut that much we would see a massive economic slowdown, since deficit spending is, by its nature, economic stimulus.
Americans expect X services for .7X prices. That would need to change to really “balance the budget”.
It’s people like you that make me come here.
I enjoy listening to and reading fact based well thought out articles and comments.
Thank you
DOGE isn’t anything but a conman show to distract from Trump and Musk de-funding corporate and executive branch watchdogs. If saving money and making things more efficient was the real goal they would be looking carefully at the outcomes of spending, not just randomly freezing credit cards and doing public victory laps.
The budget deficit and the trade deficit have very little to do with each other. They use the same word, but they don’t refer to the same kinds of quantities. But POTUS doesn’t understand that.
A trade deficit isn’t inherently bad. I think Matt wrote an good explainer morning dump in the last couple of weeks that’s worth a read.
Also, social security isn’t spending, it’s giving citizens their money back.
As for car makers opening up places here. I can only guess they are all weighing the pros and cons of the fact that Trump will not be president in 4 years. It’s a total gamble. Best way will be to build as little here now just in case the tariff stuff is reversed in 4 years. But it’s a risk. Tough time for manufacturers to say the least.
It’s almost like Congress surrendering their Constitutional duties to the Oval Office over the last 40+ years so they don’t have to actually take a stand on anything was a bad idea.
So much this. Meanwhile, our plans to replace my wife’s car are on hold; two of her choices are made in Japan (Mazda CX-90 and Lexus GX550) and her other choice, the new Scout Traveller EREV won’t be out until 2027 at the earliest.
I wonder what would happen if, say, VW were to cut their sales price radically, but then introduce a large admin fee for importing the car.
Your taxable/tarifable price would reduce significantly, but you’d still pay VW or whomever the same amount of actual money.
A license fee for the privilege to use the glorious Cariad software? Or a software lock on every possible electronic feature. It is a service product, you see. Ok, now you want to tariff our software industry? Sure about that?
I was proposing a way to reduce the tax burden on American customers without destroying international trade.
Import the cars for $1 and charge $28,000 domestic transport cost? Hmm
I think you could legally justify the price of the car reducing to the Bill Of Materials cost of the car, and the rest is an assembly/admin fee.
Although in the current climate they seem able to change the rules on a whim.
Trying to be clever will probably just make a bunch of lawyers richer.
Do RoRo fleets have Chinese built ships? If so we will be even more effed.
98% of ships that service American ports are Chinese built so the odds are not great.
China should just make an order that none of their ships can go to the United States.
I imagine that the percentage of Korean-built ships will increase dramatically. Hundai stands to make a killing.
So what we have seen on the tariff topic as a parts importer is that anything labeled automotive HS code gets hit. Also we are talking about the gambit of parts, screws, nuts and such.
Also note what this will do to the cost of car parts, especially for rare models. Basic repairs and maintenance will also go up.
So… tariffs make prices go up. Got it.
My Ute, eligible for import in 2026, will attract the 25% Chicken Tax and the 25% ChickenShit Tax. Maybe I’ll just go join it in Australia instead.
The way things are going, by then people won’t be allowed to leave the country without passing a loyalty test and there will be controls on exporting currency.
Bolt in a set of plastic jump seats in the bed with belts like an 80s Brat. I’m personally looking to import a Crewman SS instead.
Having recently done paperwork for what was effectively a private party sale with an ocean in the middle, it is surprisingly similar to a normal private party sale. Technically speaking (though obviously questionable,) you could just write in whatever price you want, pay the seller cash off the record, then pay a lower tariff. Just like paying lower tax and fees when you go to register a car at your local DMV. I’m not saying you should, but it is theoretically possible to say you bought the car for one dollar (as is tradition) then pay a quarter extra.
If they’re smart the value the car when it hits US soil. They could use a simple list price and not even look at your car. So I doubt you will get away with a price even just 20% lower than what the car is really worth.
The thing is, the people coming up with these new rules are not very smart at all, so I doubt they’ll change the paperwork unless it’s to add a question like “is this vehicle woke from the factory?”
Just don’t buy a Nissan LatinX or a Daihatsu Bipoc! No problem!
if they’re smart. so you’re saying there’s a chance…
Anyone who expects “clarity” or “consistency” from this joker needs to have their head examined.
“It’s a negotiating tactic. You just don’t understand.” That’s all I get to hear at work. What these people fail to grasp is that if you kick the dick of the guy you’re negotiating with out of the blue then they aren’t going to deal with you at all in the future.
I’m sorry – What’s the good news?
I suppose that the good news is that this administration is speed running making everything shitty so if we still actually have elections in 1.5 and 3.5 years maybe people will actually wake up and the people were were ignorant or evil enough to vote for this will stay home out of shame.
Do you really expect an election?
It’s going to be fraudulent, but it will happen. And you should vote anyway as a performative gesture. gestures and chestthumping work.
I always do.
That’s why I said “if”
Sorry I missed that. Rough day yesterday.
The teensy bit of good news is that a 25 percent tariff is tiny if the car you buy is almost worthless to begin with. I’m not happy to pay $70 in import duties, but it could be so much worse.
But importing worthless cars makes less sense if you have to pay a few K for getting it to the US… Shipping cars isn’t cheap, especially with the new rules on Chinese manufactured ships, right?
At this rate – the US becomes the new Cuba (but without the excellent healthcare)
Except instead of being embargoed by others – We’ve done it to ourselves.
Importing old cars from Japan will probably get cheaper, for all of us outside the US. (Because there’ll be less competition from US buyers).
They said I was a fool for importing a Triumph Acclaim last year but now I… No, wait, I’m still a fool.
It is a Honda.
Yes, but you are the most awesome kind of fool!
Some good points but you still feel like you are getting ripped off. If they got rid of some of those port and random shipping fees as a trade off I would be more on board. I’ve often wondered if the enthusiast committee could get with someone like AAA or another group that lobbies to get some better say and access to the morons creating the rules.
Thank you for writing such a great article .
Clear, concise and to the point.BTW say thanks to your wife for the free legal advice.
Absolute disgrace of an administration. And to keep it car-focused, thanks for the incredibly informative article, as always, Mercedes.