Berliner Boersenzeitung - Texans warily eye impact of Trump's tariffs on their beloved trucks

EUR -
AED 4.089192
AFN 72.375297
ALL 90.522135
AMD 403.960011
ANG 1.992858
AOA 1022.158315
ARS 1721.026204
AUD 1.622555
AWG 2.004232
AZN 1.896276
BAM 1.949815
BBD 2.252143
BDT 139.432002
BGN 1.946144
BHD 0.421903
BIF 3345.395827
BMD 1.113462
BND 1.429654
BOB 13.263287
BRL 6.211445
BSD 1.118367
BTN 105.10238
BWP 15.342766
BYN 3.348417
BYR 21823.857856
BZD 2.249176
CAD 1.584629
CDF 2577.664591
CHF 0.923589
CLF 0.027839
CLP 1095.680494
CNY 7.427182
CNH 7.425395
COP 3684.47961
CRC 505.844995
CUC 1.113462
CUP 26.84037
CVE 109.927568
CZK 24.381701
DJF 199.118389
DKK 7.475084
DOP 67.831481
DZD 152.094503
EGP 59.632022
ERN 16.701932
ETB 179.434408
FJD 2.519208
FKP 0.83586
GBP 0.836605
GEL 2.8909
GGP 0.83586
GHS 13.095801
GIP 0.83586
GMD 82.395958
GNF 9907.543483
GTQ 8.545768
GYD 234.340672
HKD 8.735945
HNL 30.063268
HRK 7.537036
HTG 146.586749
HUF 365.29322
IDR 20242.407585
ILS 3.533294
IMP 0.83586
INR 104.319432
IQD 1695.380662
IRR 2122342.339778
ISK 136.788751
JEP 0.83586
JMD 177.493575
JOD 0.789402
JPY 177.191876
KES 144.72809
KGS 97.371816
KHR 4561.020051
KMF 492.150581
KPW 1002.115879
KRW 1485.881747
KWD 0.346409
KYD 0.931931
KZT 499.292895
LAK 25171.941393
LBP 100144.948857
LKR 371.665803
LRD 190.11472
LSL 18.333846
LTL 3.287764
LVL 0.673522
LYD 7.168994
MAD 10.909213
MDL 20.095683
MGA 5110.791458
MKD 61.532684
MMK 2337.98716
MNT 4012.309549
MOP 9.036082
MRU 45.114315
MUR 52.522235
MVR 17.145125
MWK 1939.229956
MXN 20.722015
MYR 4.535686
MZN 71.160941
NAD 18.334257
NGN 1498.887566
NIO 40.91944
NOK 10.621132
NPR 168.163054
NZD 1.993353
OMR 0.428136
PAB 1.118367
PEN 3.811298
PGK 5.008631
PHP 70.414184
PKR 309.295093
PLN 4.403453
PYG 6902.757521
QAR 4.076686
RON 5.344281
RSD 117.600504
RUB 92.249092
RWF 1654.606189
SAR 4.183295
SBD 9.008741
SCR 15.35965
SDG 669.749634
SEK 11.049609
SGD 1.42779
SHP 0.834335
SLE 25.503035
SLL 23348.749147
SOS 639.13239
SRD 41.806022
STD 23046.418134
STN 24.424807
SVC 9.785874
SYP 14477.234335
SZL 18.339705
THB 37.488059
TJS 10.27756
TMT 3.897117
TND 3.340082
TOP 2.680949
TRY 55.931898
TTD 7.58465
TWD 36.590149
TZS 2948.514585
UAH 50.865607
UGX 4562.993512
USD 1.113462
UYU 45.250693
UZS 13391.53277
VES 1002.662073
VND 28565.314355
VUV 133.411902
WST 3.103285
XAF 655.957
XAG 0.021085
XAU 0.000275170461
XCD 3.009187
XCG 2.015495
XDR 0.787276
XOF 655.957
XPF 119.331742
YER 263.331712
ZAR 18.432803
ZMK 10022.446406
ZMW 22.782589
ZWL 358.534353
SSP 6397.282577
MXV 2.32832
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

Texans warily eye impact of Trump's tariffs on their beloved trucks
Texans warily eye impact of Trump's tariffs on their beloved trucks / Photo: RONALDO SCHEMIDT - AFP/File

Texans warily eye impact of Trump's tariffs on their beloved trucks

Fearing that US President Donald Trump's 25 percent tariffs on imported cars and auto parts could spark "paranoia" among buyers and drive up prices, Arthur Bibbs has decided to go ahead and buy a secondhand truck now.

Text size:

"I lost my truck in a storm, and I wanted to buy a vehicle as soon as possible before things get too complicated," said Bibbs, a 38-year-old Texan who works for an electric company.

In this vast southern state -- where the oil, agriculture, livestock and energy businesses dominate -- people love their trucks, whether pickups or SUVs.

In Houston, the largest city in Texas and the fourth-largest in the United States, 80 percent of new vehicle purchases are for trucks, according to the Houston Automobile Dealers Association (HADA).

Nationwide, the figure is 74 percent, with Ford's F-Series, Toyota's RAV4 and Chevrolet's Silverado leading the category. But none of those vehicles, even those with emblematic American names, are 100 percent "Made in USA."

Most include parts made in Canada or Mexico under terms of past North American agreements now called into question by the trade war launched by Trump.

Even if a car is assembled in the United States with components from other countries, "of course they are going to have to upcharge the prices," said Tino Ruiz, who owns a dealership in Magnolia, north of Houston.

Tariffs -- taxes or fees on imports -- typically affect the price paid by consumers.

The US president has said that by imposing tariffs on cars and car parts he wants to bring production back to his country, but economists say high domestic labor costs and other factors will make that challenging.

The tariffs "could undermine the White House's reshoring goals by rendering final assembly manufacturing in the US prohibitively expensive," said a paper from the Center for Strategic and International Studies.

- 'Going to feel that hit' -

RoShelle Salinas, vice president of the Houston Automobile Dealers Association, said that in the short term "we can expect a modest uptick in purchases as price-conscious buyers aim to stay ahead of potential price increases."

She estimated those price rises at $3,000 to $10,000, depending on the vehicle.

Since the average new vehicle sold in the United States now costs more than $50,000 -- and trucks are even more expensive -- "we're going to feel that hit, no matter what," Salinas said.

"The sentiment here is that all of these tariffs will trickle down to people that buy items," she said. "That's going to be you and I."

Ruiz, the dealership owner, said he might profit from a boost in sales in the short term.

But, he said, "Eventually I'm going to have to pay the high price to go purchase another vehicle," and "I'm going to have to transfer that to the customer."

Bibbs, his first customer of the month, said he decided he had to "get me a vehicle now."

And he wanted an American model -- his final choice was a full-size Dodge Ram pickup -- figuring the new tariff scheme will keep American-made replacement parts cheaper when it comes time to service his truck.

"I did purposely go out on a limb to try and get an American-made vehicle, for those purposes," he said.

- 'Make cars better' -

Ruiz said he supports local brands but also sees the value in globalization.

He believes competition drives everything and that no one should be forced to buy particular brands -- or only American products.

"Unfortunately, the American cars, they're more disposable... You get them to 100,000 miles and you've got to get rid of them, they start giving problems," he said.

"You buy a Japanese car -- Toyota or Honda -- they keep up to 200,000, 300,000 miles."

"So, OK, if you want to do that, then make cars better."

(A.Berg--BBZ)