How Automotive Tariffs May (Or May Not) Affect Classic Cars

Forbes

2 days ago

Steven Posner, CEO of Putnam Leasing
The Trump administration's tariffs on new automotive vehicles and parts are on the verge of having an impact.
The Trump administration has threatened vehicle and parts tariffs since early this year.
Trump has levied tariffs on imported vehicles as well as steel and aluminum. There have been delays but Aug. 1 is the next date where tariffs are to take full effect. Trump has delayed tariffs at various times this year.
Tariffs are paid by companies that import goods. Those costs typically are passed on to customers. Tariffs are not payments from one country to another.
At the same time, tariffs may have an effect on the collectible car market.
'Tariffs do not affect cars 25 year or older,' Steven Posner, CEO of Putnam Leasing, said in a recent interview.
However, one-fourth of the way through the 21st century, some collector cars may be affected. They include brands such as Ferrari and Mercedes.
'There's a just a handful of collector cars that are hot in the U.S. market,' Posner added.
'I think it's the law of unintended consequences,' he said. 'It hurts the car broker or car dealer who's interested in something post 2000.'
The global automotive industry is full of change. China has been leading the charge for electric vehicles. The U.S., under Trump, is hostile to EVs.
Chinese automakers have also seriously revamped product development where new models can be developed much faster than what U.S. and European automakers can accomplish.
Posner said high-end buyers of collector cars may go along with the tariffs.
'The individual that buys a Bugatti that costs $4 million and all of it suddenly it costs $5 million...People will spend the extra $1 million.'
Collectors of such cars 'are generally wealthy people,' he added. 'You always spend a little bit more.'
Some purchasers of such collector cars have 'all their life wanted this particular car.'
For now, the world of tariffs, EVs and may come together.