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EU cuts car import tax to 2.5%, US manufacturing wins big. Trump’s new plan could cripple Mexican, Canadian auto industries
Citizen Watch Report ^ | Alex

Posted on 03/25/2025 8:47:45 AM PDT by davikkm

The European Union has just made a major move in trade policy that could reshape the auto industry in the U.S. They’ve slashed the tax on American-made cars from 12.5% to a mere 2.5%, effectively matching the U.S. tariff on European-made vehicles. This is a game changer, especially for automakers like Honda, who will now have a huge advantage in the EU market.

For companies like Honda, manufacturing cars in the U.S. accomplishes two things. First, they avoid the 12.5% tariff on cars sold within the U.S., making their products cheaper domestically. Second, they can ship those same cars to the EU and pay just 2.5%, instead of the original 12.5% duty. This could allow Honda to slash prices by up to 10% in Europe, boosting their market share significantly.

(Excerpt) Read more at citizenwatchreport.com ...


TOPICS: Business/Economy; Government
KEYWORDS: automotive; blogpimp; eu; trump
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1 posted on 03/25/2025 8:47:45 AM PDT by davikkm
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To: davikkm

2 posted on 03/25/2025 8:50:21 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: V_TWIN

Now Toyota needs to get the hell out of Mexico


3 posted on 03/25/2025 8:52:03 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: davikkm

Looks like it’s good for everyone including the consumer.


4 posted on 03/25/2025 8:52:13 AM PDT by Sacajaweau
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To: davikkm

YUGE win for the US manufacturing sector and for Trump. The Euroweenies blinked. Canada doesn’t stand a chance, they will have to lower tariffs so that our industry has a level playing field. No one else matters (and I HOPE that China doesn’t play ball, because we will eat them alive.


5 posted on 03/25/2025 8:57:28 AM PDT by Ancesthntr ("The right to buy weapons is the right to be free." The Weapons Shops of Isher)
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To: davikkm

I’m sure it will be crickets from the TDS infected media.


6 posted on 03/25/2025 8:57:45 AM PDT by grobdriver (The CDC can KMA!)
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To: V_TWIN

“Now Toyota needs to get the hell out of Mexico”

Toyota assembles about two million cars a year in the US.

We import about 200k a year from Mexico.


7 posted on 03/25/2025 8:58:28 AM PDT by TexasGator (111111111/)
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To: davikkm

Who else laughed like a little old lady who just won at bingo when you read this?

The tariffs were *reciprocal* - you lower yours, we lower ours. You raise yours, we raise ours. Matching. The power for them to have lower tariffs was within their own hands.

Will the media even report this after falsely portraying what the tariff policy was, now that it is already proving to be successful?


8 posted on 03/25/2025 9:01:49 AM PDT by Republican Wildcat
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To: V_TWIN

Best president ever!

Only two come close:

Ronald W Reagan
George Washington


9 posted on 03/25/2025 9:02:57 AM PDT by ABStrauss (I miss Rush!)
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To: Sacajaweau

Keep in mind that his is not going to increase F-150 sales in Italy.
I am just being a smart A$$.
The issue is that gasoline in Italy was 1.73 EU/liter. Diesel was 1.63 EU/liter last October.
Fuel is VERY expensive there.
Automobiles are typically only owned by RICH people. Then they have one and it is a subcompact car.
Many of the older roads are VERY narrow. They were built 700 years ago. Even then many cars were missing side mirrors and had scrapes down the side from cutting it too close.

The average commuter drove a scooter. Vespa was the biggest seller. Although I did see Honda and other “Japanese” brands. Plus they are easy to park and drive down an alley that was 6’ wide. Where you can not even drive a sub compact car.

In Rome several cab drivers drove Toyota hybrid hatchbacks.
Not sure the model. Rode in one twice from train station and to the Vatican.


10 posted on 03/25/2025 9:05:57 AM PDT by woodbutcher1963
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To: davikkm; All

Trump has been right about just about everything and the Republicans are still too scared to push legislation. Sheesh, talk about a one man army.


11 posted on 03/25/2025 9:06:52 AM PDT by wiseprince (Me)
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To: Republican Wildcat

Trump won’t let them get away with that. They have tariffs but they also have policies enacted to prevent US competition, This will be reflected in the reciprocal tariffs.


12 posted on 03/25/2025 9:09:25 AM PDT by wiseprince (Me)
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To: TexasGator

I wonder if Toyota is thinking about building another plant now in the USA?
My Tacoma was built in San Antonio. However, now they are built in Tijuana and some other plant in Ol Mexico.


13 posted on 03/25/2025 9:10:50 AM PDT by woodbutcher1963
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To: davikkm

Now try and convince me with your propaganda that Tariffs are bad!


14 posted on 03/25/2025 9:17:21 AM PDT by SoConPubbie (Trump has all the right enemies, DeSantis has all the wrong friends.)
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To: woodbutcher1963

For the math and units challenged, 1.73 Euro/liter = $7.08/gal. Even higher than California!


15 posted on 03/25/2025 9:33:36 AM PDT by ProtectOurFreedom (PDJT doesn’t just walk through the Valley of the Shadow of Death. He swaggers.)
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To: SoConPubbie

Canada is pretty quiet...


16 posted on 03/25/2025 9:36:17 AM PDT by Sacajaweau
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To: TexasGator

Yep. Toyota (10 US plants) and the American workers they employ will also conceivably benefit. May depend on percentage of US content in the finished vehicles. Assembly of imported parts could amount to less than 50% of the value. Don’t be surprised if European car manufacturers push the EU to play some games on that point.


17 posted on 03/25/2025 9:39:50 AM PDT by katana
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To: ProtectOurFreedom

Yes, $7.08 per gallon. The head waiter at the hotel we stayed at in Sorrento drove a scooter to work. He had worked there for over thirty years. Gesseppi was over 70 and drove a scooter back and forth to work daily. I am not sure where he parked. There was no parking lot at this hotel. It was built on the side of the cliff.

He said when he was younger he used to work on Capri. Which meant driving the scooter down to the ferry dock and take that back and forth to work daily. At the ferry dock there was a parking lot that typically had several hundred scooters parked in it.


18 posted on 03/25/2025 10:00:23 AM PDT by woodbutcher1963
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To: davikkm
Except very few US models will be sold in the EU, due to their prohibitive taxation on fuel and registration fees based on engine displacement.

Ford could manage to sell US made Transits, Mavericks, and Rangers, but I don't think Euro Mustang or Explorer buyers are concerned with prices to begin with.

19 posted on 03/25/2025 10:05:46 AM PDT by SecondAmendment (The history of the present Federal Government is a history of repeated injuries and usurpations ...)
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To: davikkm

But but but . . . tariffs are terrible and will destroy us all and no country will ever change their behavior in response to our reciprocal tariffs and we owe it to the world to let them rip us off until the end of time and its just not fair and Orange Man Bad!!!


20 posted on 03/25/2025 10:16:07 AM PDT by Burma Jones
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