Car invoices are in force, exerting pressure on new cars’ prices

Invoices for imported vehicles came into force on Thursday, a policy stated by President Trump will push investment and jobs in the United States, but analysts say they will increase new cars by thousands of dollars.

25 % of the duty applies to all cars assembled outside the United States. From May 3, the invoice will also apply to imported car parts, which will add to the cost of cars assembled in the domestic market as well as car repairs.

There will be partial exemption for cars in Mexico or Canada that meet the terms of free trading agreements with these countries. Car manufacturers should not pay duties on components such as engines, transmissions or batteries in the United States and later installed in cars in Mexican or Canadian factories.

This layout will reduce the impact on vehicles such as the Chevrolet Equinox electric vehicle, which is assembled in Mexico, but includes a battery and other components manufactured in the United States. General Motors will only pay an invoice in the part of the car built abroad.

At the same time, the task of spare parts will increase the cost of cars in Michigan, Tennessee, Ohio or other states. This is due to the fact that most cars circulating from our factories contain abroad, often more than half of the vehicle costs.

About 90 percent of the value of some Mercedes-Benz cars built in Alabama, for example, is in engines and broadcasts imported from Europe, according to data compiled by the National Road Safety Service.

The impact of invoices on individual vehicles will vary widely. Cars such as Tesla Model Y, Texas and California, or Honda Passport, manufactured in Alabama, have high rates of US -manufactured accessories and will pay lower invoices.

Invoices will be higher in overseas cars, such as the Toyota Prius built in Japan or Porsche Sports Cars in Germany.

Even people who do not buy new cars will be hit by invoices because they will pay more for accessories such as tires, brake pillows and oil filters.

Michael Holmes, director of Virginia Tire and Auto, a car repair and maintenance chain, said that along with its suppliers would initially try to absorb most of the increased costs.

“This is not viable,” Mr Holmes said. “It is a magical thought to believe that businesses will not convey this.”

Car invoices could also push prices for used cars over time, analysts reported, increasing demand for these vehicles, as the news becomes unacceptable for many buyers. Premiums can also increase because repairs will cost more.