Australian car industry unaffected by Trump tariffs

US president Donald Trump’s proposed new tariffs on European vehicles will have little to no bearing on Australian sales or pricing, according to Germany’s big three car-makers.

In a move that has drawn the ire of the car industry, Trump wants to apply a 25 per cent tariff on vehicles and parts imported into the US as a means of ensuring job protection and national security.

While the fallout continues at an international level, the tough measures will have little to no bearing on Australian buyers, according to spokespeople for Mercedes-Benz, BMW and Audi – our three biggest European marques in terms of sales.

“I wouldn’t think it would have a big impact on us,” said Mercedes-Benz Australia corporate communications manager David McCarthy.

“I wouldn’t have thought the Australian market would be a big factor. Our allocations are quite different because we are a right-hand drive market, which means there are different parts at play just for starters.”

motoring.com.au is still awaiting formal responses from the parent bodies of Audi and BMW. However, spokespersons for both manufacturers have indicated the tariffs will not affect Australian production or pricing.

European manufacturers are facing a major financial blow from the proposed tariffs, which will be applied to inbound vehicles from Europe, but could be reversed on US exports.

The Trump measures have been slammed by the likes of Toyota Motor Corporation, which currently has 10 manufacturing plants in the US and warns the move would increase the price of America’s top-selling car, the Camry, by nearly $A2500.

It also predicted that the levy would cost 195,000 auto worker jobs in the US, a figure that would balloon to more than 600,000 if other countries retaliated with tariffs of their own. Already, the tariff measures have forced Harley-Davidson to move production of European-designated motorcycles out of the US.

The Commerce Department’s investigation into the tariff proposal is expected to hold hearings in the coming weeks before a final decision is announced in late July or August.