Tariff Question - is it effecting Can to US imports?

[cruiserpilot]

I had a brunch with friends yesterday. Got into the topic of importing trucks from all over. Middle East vs Europe, taxes and duties etc.
I've been looking for a bit just having fun more than anything. But there was one who seemed fairly certain that the US now has import
tariff on used vehicles coming from Canada. Does anyone know anything about this? Is it even real? I know from a few years ago that
the Blaine crossing imported 3-4 cars a day at times. I know lots of the coveted Canadian diesels have crossed going south. So if I was
to downsize by a truck or two is there a new issue here? Can US guys fill me in?

 

[AdamFire]

Yes vehicle import tariffs are alive and well. Unless the vehicles original country of origin is USA.

 

[cruiserpilot]

I'm aware of the 25 yr rule. That hasn't changed. Is there actual monetary tariff on buyer from US to buy Canadian
vehicles aside from already in place state taxes etc?

 

[AdamFire]

I just answered your question. There are monetary tariffs on vehicles coming from Canada into the US.

 

[PAToyota]

Yep - 25% tariff on Canadian vehicles and parts imported into the US - added to the other taxes and other import fees.

 

[cruiserpilot]

Yep - 25% tariff on Canadian vehicles and parts imported into the US - added to the other taxes and other import fees.

Wow, so that's on the buyer?

 

[AdamFire]

When the buyer does their import paperwork it is bundled into the import packet along with their other fees for customs. You could however offer to reimburse the buyer 25%, but that would most likely not pan out financially for you.

 

[cruiserpilot]

Selling a truck for 30K then giving 25% back? The government takes the 25%, not the seller, or am I more confused than
I know I am

 

[AdamFire]

Whoever is importing the vehicle has to pay 12.5% of the vehicles sale price to customs (the government). Each country has their own tariff rate.

This raises the cost for the buyer. There is no way around it.

 

[cruiserpilot]

I’m just glad to hear the number in percentage. That’s what I was looking for at the beginning. So selling is going to be problematic. My sympathies lie with people who would like to import something cool but this will put the dream out of reach. So the only ones to benefit are the wealthy who have the extra.

 

[PAToyota]

Wow, so that's on the buyer?

Ultimately the buyer pays for it - one way or another. The seller could pay some of it, but that eats into their profit.

And it isn't like anyone else is going to pay for it. A certain element tries to make it sound like the foreign government is paying for it. Really? Think about it... A Canadian citizen/company sells something to a US citizen/company for $100. A 25% tariff is put on it. So $25 goes to the US government. Either the Canadian citizen/company reduces their price to $75 (**) so the American citizen/company still pays $100 for it or the American citizen/company has to pay $125 to cover the purchase price and tariff. It's not like the Canadian government is going to go and pay the $25 for every $100 their citizens/companies sell.

** : Yeah, I know the math isn't quite right because lowering the price would lower the tariff, but for simplicity sake... Of course there are also all the other taxes, duties, fees, and such as well.

 

[cruiserpilot]

I get it now. The whole 25% thing was mentioned to me by my financial adviser the other day and it must be new.
I'd never heard of this particular tariff. I wouldn't sell a vehicle for less in the area of 25% as being just silly. In the usual
world of cash, which is what they are really trying to eliminate up in Canada, making it illegal to fund anything over $10K
in cash, with only allowable $2K increments. So basically I hire a guy to roof a building. Costs $12500. I can't just walk up
and pay that. I have to run it thru a financial service. Cause everyone has to make money, taxes not withstanding.
Be clear - Canada is not there yet but they are slimy-****ing their way around it now. Leadership in the 2 greatest nations
on earth - Canada and US are running neck and neck in respective opinion polls, lol.

As a seller, I could come to an agreement to lower the price to save on value of 25% but would want an 'under the table'
payment in cash. So I get my money and buyer saves money. I have put this to paper maybe unwisely but it's
as much of a solution as any other.

 

[AdamFire]

I think what you’re referring as planning on doing under the table stuff would be considered fraud and would open you and the buyer up to significant legal issues.

 

[PAToyota]

I get it now. The whole 25% thing was mentioned to me by my financial adviser the other day and it must be new.

Yep, the tariffs are new this year since April.

If you think 25% is bad, the tariffs on imports from China were 245% for awhile and there are still tariffs as high as 50% on imports from Brazil for example.

 

[DrRock]

Just to clear up some confusion here, the automobile tariffs do not apply to vehicles over 25 years old;
US car import taxes include a standard 2.5% duty for vehicles and a 25% penalty tariff for modern passenger cars and trucks, totaling 27.5%. Pickup trucks specifically face the 25% penalty tariff. Classic cars over 25 years old are exempt from the penalty tariff, only paying the 2.5% base duty. Mandatory processing fees like the Harbor Maintenance Fee (HMF) and Merchandise Processing Fee (MPF) also apply to the cargo value.

Since most of the Toyotas we wish to import need to be older than 25 years anyway, this saves us from the 25% tariff.

 

[AdamFire]

Almost correct. All countries now have a base 10% tariff. The last vehicle from Japan I imported was a 12.5% tariff. Cargo vehicles over 25 years old are still subject to the 25% chicken tax.

 

[cruiserpilot]

Yep, the tariffs are new this year since April.

If you think 25% is bad, the tariffs on imports from China were 245% for awhile and there are still tariffs as high as 50% on imports from Brazil for example.

Ok, so this is for people with new car imports. I've seen enough Chinese electric car fires to not even think about that technology. I think some of the Chinese vehicles are rock stars. They have some freaky cool innovations. Canadian govt really screwed Canadians by instituting a 100% tariff on Chinese electric cars - which we don't even import, any at all. Reciprocal tariffs were given on our Canola and something else which we are being destroyed by.

Just to clear up some confusion here, the automobile tariffs do not apply to vehicles over 25 years old;
US car import taxes include a standard 2.5% duty for vehicles and a 25% penalty tariff for modern passenger cars and trucks, totaling 27.5%. Pickup trucks specifically face the 25% penalty tariff. Classic cars over 25 years old are exempt from the penalty tariff, only paying the 2.5% base duty. Mandatory processing fees like the Harbor Maintenance Fee (HMF) and Merchandise Processing Fee (MPF) also apply to the cargo value.

Since most of the Toyotas we wish to import need to be older than 25 years anyway, this saves us from the 25% tariff.

Clarity! Thank you. It is comforting to know then that my target was selling my old stock land cruisers in the near future. I am
currently looking at Europe and 15 yr old Cruisers. Nothing yet, but if I get to 5 in my fleet it's gonna be silly.

Thank you guys for all your info. Really clears up the reality and FACTS, which contrary to popular opinion are most important.