Classic cars spared in tariff fight
President Donald Trump s sweeping tariff plan has rocked global markets with every single sector in the S P ending Friday in deep red But an addendum issued by U S Customs and Frontier Protection just after his April tariff pronouncement provided relief for those in the collectible car business Vintage cars would be exempt Collectors brokers and logistics specialists had feared the worst when Trump s March executive order saddled vehicles and auto parts with new tariffs a tax that would be in addition to the current rate and didn t include any exemptions for used and classic cars New customs guidance now outlines a special exemption for customer vehicles and light trucks from all countries manufactured in a year at least years prior to the year of the date of entry The old Alfa Romeos and BMWs Ferraris and Fiats that enthusiasts love to discover abroad can still be sent back home at current rates Martin Button global brand ambassador for CARS a classic automotive relocation provision had been on the edge of his seat all week It s good news he crowed on the phone that evening after receiving an email outlining the exemption We remain hopeful that this move by the US authorities will influence the importance of classic cars worldwide Dmitriy Shibarshin the global marketing director for West Coast Shipping explained in a message about the product Vintage car fanciers had worried the lack of an exemption would decimate large swaths of an industry that includes million classic cars in the U S and a combined value of more than trillion according to content from insurance provider Hagerty Inc Auction houses would lose international consigners adverse to paying extra just to sell their cars at the annual sales in Monterey California restorers and rebuilders would lose clients frustrated with the rising costs of parts and associated delays for their vintage toys But on March lawyers from Simon Gluck Kane LLP had sent a letter to U S Business Representative Jamieson Greer outlining the reasons why an exemption should be applied for certain used automobiles race cars and parts Increased duties discourage imports stripping local and national jurisdictions of tax revenue it declared the million sale of a collectible car at a rate of generates sales taxes of Not only would the US Treasury be deprived of the duties which would not be paid wrote Christopher Kane an attorney who specializes in ocean carriage and compliance audit procedures at Simon Gluck Kane but the state would be deprived of considerable irreplaceable sales tax revenue The late-hour addition had Boston-based automotive broker Steve Serio breathing a sigh of relief He had been eyeballing his former Aston Martin V Vantage for sale at an RM Sotheby s auction next month in Milan hoping to buy back the silver bullet baby he sold in But the proposed tariff would have tacked on an additional to its high-estimate value The extra kills the deal Now it s either that or a mint Bentley T he says But the coast isn t totally clear for all enthusiasts of collectible coaches The carve-out doesn t protect later-model used vehicles Those whether they re Nissan GT-Rs from Japan or Mercedes-AMG C s from Germany will be subject to the hefty new tariffs Welcome to the Wild West Kane stated in an email on April Somehow present circumstances in the world of US tariff program have so multiple rules one might wonder just how multiple there are and if they are capable of being top of mind in anyone s head Hannah Elliott Bloomberg News
