Santiago economic structure and economist Niño Becerra believes Trump’s rates in Chinese cars will lead to a drop in prices.
The motor world, like the world in general, is in a complicated point. The price of cars is through clouds of clouds and Donald Trump “The prices of cars will fall.”
Santiago Niño Becerra, economist and teacher of economic structure spoke on this topic last January in the program “Tots Is Mou”, as collecting the colleagues of the sport, referring to the impact that Donald Trump will have when he climbed power at the White House.
Given the date of his participation, on January 16, he still speculated. He commented that to see the results, “we must wait for January 20, because from this day, Mr. Donald Trump will be invested president of the United States.”
His point of view was that, if he had announced, “we will cry everything”, to increase the prices. Specifically, he referred to the fact that “Trump said he would put a 100%fare to Chinese cars.”
This, according to his analysis, would have a return effect that would benefit from Europeans. Since the fact of double the price is something that Chinese producers cannot do at the economic level, they commented that the logical thing would be that the cars that have been addressed to the American market, will become distributed by Europe or Africa.
This surplus, in his opinion, should have a logical consequence: the increase of the offer would lead to a lower price, due to the surplus of shares, which would lead to a chain effect: “Will reduce the prices of cars. If the Chinese are lowering their prices, European cars will be forced to lower prices or close the factories. “
Now that is two and a half months ago, How is today’s situation?
Trump is a man with words for taxes, so he has set a 100% fee for Chinese cars. Not only has this also announced a 25% increase for any vehicle made anywhere in the world, apart from the United States. In fact, the latter comes into effect tomorrow.
The first is the first: el Chinese car tax in the US has had no return effect on Europe. We do not know if there will be several copies available on the old continent, but no brand has made a substantial reduction of its models for this reason.
It is true that producers like MG or Byd Added promotions in their electric cars, But it was as a result of the movement plan (although it was already reactivated), which caused him to try to compensate for the loss of his own direct reductions.
Actually, What appears to affect the most Europe Or, at least at the European car brands, Is the entry into force of 25% fare for cars that are manufactured outside the North -American countryBecause they will be more expensive, which will affect their sales.
Impact of tariffs on European brands
As we have already collected in our analysis, it is calculated that it isThe price will be between 4,000 and $ 10,000.
Many of the European brands have factories within US borders, Therefore, the models that appear there will not be affected, but also have plants in neighboring countries, such as Mexico and Canada, which is where most vehicles will stop the mentioned market, so that they will be weighed by tax.
Signatures like Volkswagen, Mercedes or BMW are the ones that will be most affected by this.
And not only on the other side of the Atlantic: According to the data of the European Association of Automobile Manufacturers (that), In 2023 the European Union exported about 800,000 vehicles, That is, around 40,000 million euros in cars.
Of the whole of the EU, Germany is the one that makes the biggest business to “cross the puddle” And in 2024 it exported 446,566 cars to the United States, worth $ 24.8 billion. Therefore, it involves an important volume of business that will be weighed by a fee that increases the price of each car.
It remains to wait to see if the forecast of the baby Becerra is fulfilled, although at the moment there is no indication to emphasize that they will be market markets.
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Tags: Car sales