Im­port tar­iffs avoided

Amer­ica’s plans for 25% tax on cars and parts shelved

Classic Cars (UK) - - Chasing Cars -

Fears of a 25% tar­iff be­ing im­posed on clas­sic cars and parts im­ported to the US have been al­le­vi­ated. Pres­i­dent Trump pro­posed the tar­iff in May of this year, cit­ing po­ten­tial threats to na­tional se­cu­rity and the eco­nomic wel­fare of the US au­to­mo­bile and au­to­mo­tive parts in­dus­tries. It was as­sumed in the in­dus­try that it would elicit a tit-for-tat re­sponse. St Louis high-end clas­sic car dealer Mark Hy­man said, ‘If the tar­iff is in­creased, other coun­tries will prob­a­bly raise tar­iffs in re­tal­i­a­tion. That could cause the mar­ket to break down.’

All this led to tes­ti­mony to the US Depart­ment of Com­merce on July 18 by a se­lec­tion of mar­ket rep­re­sen­ta­tives, cit­ing the threat to what is, in the US, a $180bn in­dus­try. Mean­while ac­tion was be­ing taken. David Magers, CEO of Me­cum Auc­tions, said, ‘We have a large mo­tor­cy­cle col­lec­tion com­ing out of Swe­den that will go to our mo­tor­cy­cle auc­tion in Las Vegas. That auc­tion doesn’t take place un­til Jan­uary, but Me­cum is work­ing to get those bikes onto a boat now in case tar­iffs are raised.’

How­ever, on July 25, a week after the rep­re­sen­ta­tions to the United States Depart­ment of Com­merce, Pres­i­dent Trump thank­fully backed off from his 25-per-cent tar­iff threat after a three-hour meet­ing with Euro­pean Com­mis­sion Pres­i­dent Jean-claude Juncker at the White House. Trump hailed, ‘A new phase of trade re­la­tions.’

The shock­waves of Trump’s pro­posed mea­sures would have re­ver­ber­ated glob­ally

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