In a new development that reflects the immediate impact of US President Donald Trump’s decisions on customs duties, automotive agencies in the United States entered a state of chaos and confusion as a result of imposing new fees by 25% on car imports, a decision that came into effect from April 3, according to a report published by Bloomberg Agency.
An immediate shock to car agents
According to the report, the customs decision prompted many used car agents to take exceptional measures to try to cover the severe shortage of inventory, as some agencies began to contact their former customers and offer to buy their used cars at higher prices than they originally paid, in a desperate attempt to fill the empty latitudes.
“I need to buy your car again, sir, and I am ready to pay much more, which prompted,” he said, noting that the agency’s stock has decreased from 100 vehicles to less than 40 within days.
Repeat the scenario of the pandemic
Bloomberg indicated that this turmoil returns to the mind the scene that the market lived during the Korona pandemic, when production breakdowns led to a severe scarcity of new vehicles, which prompted consumers towards the used car market, and raised prices to record levels.
Today, history appears to restore itself, but this time a direct political and commercial motivation.
The agency stated that the prices of used cars have increased during the past days by 12% in some states, according to the data of the “Mannheim” platform specializing in auctions, while some models, such as “Honda CR in the hybrid”, recorded an increase in demand by 18% since the announcement of customs duties.
Decline in sales and confusion with companies
Bloomberg said that companies such as Tesla have stopped receiving purchase requests in China for “Model S” and “Model X” models, which are manufactured in the United States, after Beijing announced its response to American fees by imposing reprisals of 125% on all American goods starting from April 12.
The company also stated that it is witnessing a significant decline in sales, and is afraid that its competitiveness will continue to be eroded in international markets, at a time when Beijing seeks to expand its exports of locally manufactured electric cars.
A widespread economic impact
According to analysts who spoke to Bloomberg, the recently imposed customs duties – which raised the total fees on China to 145% in some products – created a deep disturbance in supply chains and fell inflation in the American auto market.
These policies are expected to cause more fluctuations in the markets in the coming weeks, if diplomatic solutions or additional suspension of fees are reached.
This comes after Trump announced a temporary suspension of customs duties for a period of 90 days, which temporarily helped calm the markets, but the concerns are still a list of returning to imposing fees with their full strength after the end of the suspension period, according to Bloomberg officials of the US Department of Commerce.
In light of this turmoil, used cars appear unexpected flexibility, and even – according to the expression of one of the analysts in the agency’s report – became “negotiable assets in the shadow of a volatile commercial world,” noting that the market has actually entered at some stage that can be called the “commercial car war”.
