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The expert spoke about the impact of the imposition of duties on cars manufactured outside the United States.

Baboshkin: the introduction of US duties on cars will not lead to a complete cessation of exports
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The introduction of 25% duties on imported cars in the United States will hit European automakers, but will not lead to a complete cessation of exports, Evgeny Baboshkin, head of business development at Prime Brokerage Service, told Izvestia on March 28.

"The most important and fastest effect of the duties is an increase in the price of European cars in American dealerships, which will force a large proportion of potential buyers who previously preferred to "drive Germans" to opt for an American car. This is the main idea of US President Donald Trump," the expert noted.

According to him, American car dealers cooperating with European brands will be the first to suffer. The main consequence will be an increase in car prices in American car dealerships, which may lead to a change in customer preferences in favor of local brands.

"Considering that dealers usually buy cars in bulk, and not on consignment terms, they will be the first to feel the losses. However, supporters of protectionism rarely talk about this," the expert explained.

The main blow for European automakers, in his opinion, will be in 2026, when dealers will begin to massively reduce purchases due to lower demand.

"European companies will only feel the consequences in a year, but they have time to reorient themselves to other markets," the expert added.

One of the possible ways to compensate for losses may be to return to the Russian market. Until 2022, its volume was estimated at €13-15 billion per year, and the departure of European brands led to a loss of about €5 billion.

"If exports from Germany to the United States are halved due to duties, restoring sales in Russia may be a logical solution for them," Baboshkin summed up.

Earlier, on March 27, Trump announced the introduction of 25 percent duties in the United States on all cars and trucks manufactured outside the country. He specified that these measures will come into force on April 2 and will be added to the existing ones. The White House estimates that approximately $100 billion in annual duties will be collected.

Переведено сервисом «Яндекс Переводчик»

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