Cars Over 25 Years Old Won’t Be Affected by Trump’s Tariffs

Classic car collectors can breathe a sigh of relief.

President Donald Trump’s new automotive tariffs will not apply to cars 25 years or older, according to Hemmings Motor News. Classics will still face duty fees upon entering the U.S., but they won’t be anything like those that will hit new cars imported into the country.

Last week, Trump announced placing a 25-percent tariff on all vehicles and some automotive parts assembled outside of the U.S. and imported into the country. The president justified the decision by saying the duty fees would spur automakers to build more vehicles in America, and, in the process, create more jobs for the country’s workers. It remains to be seen if that will happen, but experts do expect the move to result in higher prices for car buyers.

Unless, of course, they have their eye on older and more desirable vehicles. There was some initial confusion about whether or not the tariffs would also apply to any vehicle entering a U.S. port, regardless of age, but the version of Trump’s presidential proclamation published on Thursday, the same day the tariffs went into effect, says otherwise.

This version of the document contains language that exempts vehicles “manufactured in a year at least 25 years prior to the year of the date of entry” from the tariff. Vehicles older than 25 years old, a distinction that applies to nearly anything considered a classic, will still face a 2.5-percent duty upon entry to the U.S., but, for now, at least, that appears to be it.

This is a big deal for collectors because some of the most desirable classic cars are sold outside of the U.S. This year’s two most expensive auction cars, 1954 Mercedes-Benz W 196 R Stromlinienwagen and the 1964 Ferrari 250 LM by Scaglietti, were sold in Stuttgart, Germany, and Paris, Francis, respectively. The former car went for $53 million and the latter for $36.3 million, so a 25-percent tariff would have tacked a substantial sum to the price of each car were they then imported to the U.S.

For now, at least, U.S.-based collectors don’t have to worry about their dream car popping up for auction overseas.

Credit: robbreport.com