Tag Archives: Tariffs

News

Mitsubishi Joins Growing List of Automakers Raising Prices Amid Tariff Pressure

Mitsubishi has become the latest automaker to announce a price increase as the industry grapples with the ripple effects of trade tariffs and inflationary pressures. Beginning tomorrow, the Japanese carmaker will implement an average price hike of 2.1% across its vehicle lineup.

The company attributes the increase to its “regular and ongoing review of pricing” designed to keep its models competitive within their respective segments. However, industry observers believe this move is a direct response to rising import tariffs, particularly the 25% levy on automotive imports first imposed under the Trump administration.

Notably, the price adjustment will not be applied retroactively and will exclude vehicles already on dealer lots—good news for buyers who act quickly.

The price revision will affect popular models such as the Outlander and Eclipse Cross. The Outlander, which currently starts at $29,645, will see its base price rise to approximately $30,268—an increase of $623. Meanwhile, the smaller Eclipse Cross will go from $26,545 to roughly $27,102, representing a $557 jump.

Although these changes may appear modest, they underscore a broader industry trend: manufacturers are increasingly passing on at least some of the cost burden from tariffs and supply chain challenges to consumers. Analysts suggest Mitsubishi may still be absorbing a significant portion of these costs, but further increases could loom if trade tensions persist.

Mitsubishi‘s pricing decision comes shortly after the company resumed vehicle deliveries to dealerships—a process that had been temporarily halted due to tariff complications. The resumption, coupled with the latest price adjustments, signals that Mitsubishi may no longer be expecting a swift resolution to ongoing trade disputes.

With this move, Mitsubishi joins a growing roster of automakers adjusting their pricing strategies. Ford recently raised prices by up to $2,000 on several of its Mexican-made models, including the Maverick, Bronco Sport, and Mustang Mach-E. Subaru has also bumped prices across most of its lineup, with increases ranging from $750 to $2,055. Even niche manufacturer Ineos has taken similar steps.

As the global automotive industry continues to adapt to an unpredictable economic and political landscape, consumers can likely expect more pricing changes in the months ahead.

Source: Reuters

News

Dacia Spring costs 3,500 euros more due to new EU tariffs

At the beginning of the year, the redesigned Dacia Spring arrived on the market, and two months later it was announced that it will cost 10,990 euros. However, the latest information says that due to the new EU tariffs, this car will cost 3,500 euros more.

In 2023, the EU launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. It was suspected that China is helping domestic companies in various ways to export their cars to the European market at lower prices and thus endangering European manufacturers. In order to respond to the growing pressure and resentment of European companies, the EU decided to introduce additional tariffs of up to 38.1%, which will come into effect on July 4. For example, BYD will pay 17.4 percent, Geely 20 percent, and SAIC, which with the help of former British brand MG is by far the biggest seller in Europe, will pay 38.1 percent. Other brands that were cooperative will pay a 21 percent duty, and those that refused will pay 38.1 percent.

This decision is already showing its impact on car prices, so the Dacia Spring will have a new starting price of 20,400 euros from autumn. On the French market, the price increase will be even higher. Thus, an electric car on the French market would be more expensive by almost 4,000 euros compared to the current starting price.

Dacia is not the only victim of the new EU tariffs, Tesla will also increase the prices of their cars. In some EU markets, the Tesla Model 3 will cost 8,500 euros more, with a starting price of 49,490 euros (subsidies not included).

Source: Reuters

News

The EU is changing tariffs on EVs made in China

At the beginning of June, the EU announced additional tariffs of up to 38.1% on electric cars imported from China, but according to information from some media, that decision could be changed.

Currently, imported cars made in China have a 10 percent tariff. However, as of July 4, this rate will rise to as much as 38 percent in some cases. For example, BYD will pay 17.4 percent, Geely 20 percent, and SAIC, which with the help of former British brand MG is by far the biggest seller in Europe, will pay 38.1 percent. Other brands that were cooperative will pay a 21 percent duty, and those that refused will pay 38.1 percent.

In 2023, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. “These can also be vehicles from other manufacturers if they have used subsidies in China,” said Executive Vice President of the European Commission for an Economy Valdis Dombrovskis.

According to Bloomberg, manufacturers that cooperated during the investigation will have lower tariffs (20.8% instead of 21%). However, those who refused to cooperate will have tariffs of 37.6 percent instead of the original 38.1 percent. It should also be noted that these tariffs are temporary and that the EU will make a new decision on permanent tariffs by the end of the year.

Source: Bloomberg