The Trump Tariffs may have an impact on the cost of Minitrucks in general. I talked to my proxy broker today and they are not sure if new 25% tariff is in addition to the current 25% customs cost on the Minitruck HTM codes or just makes others pay the same 25% customs cost as we do. I can not absorb a 50% customs fee on the purchase price of these vehicles and not pass these costs on to the buyer. I imagine other small businesses also can not absorb these costs. Kei vans can use another HTS code for customs that is only 6% of the purchase price for customs. That will be at least 25% under the new tariffs and may be 31%. Again, as a small businesses with a minimal profit margin, I will have to pass these costs on to the customer. My proxy broker is going to call me back when they have the official tariff documents in hand and know for sure how much customs costs will be increase for each of the two minitruck HTM codes used. I would suggest getting a minitruck now if you are considering one. I have a feeling the prices will go up in general once these new tariffs are in place!
It will be interesting to see how it all plays out. My presumption is that the prices are really going up because these rigs are becoming more widely accepted in different states, compared to UTVs easily reaching $40K with doors and HVAC and new trucks running upwards of $75-100K depending on the model and options. Thus, the demand has become higher.
The tariffs are levied on the cost that paid for the trauck when its sold in Japan. So most trucks sell for $1000.00 to $3,000.00 (as an example). So the extra tariffs would be $250.00 - $750.00 extra. I don't think passing this on to the consumer will be that much of a shock, besides looks like folks are already hiking prices just as @Martin Sis mentions due to demand here in the states.
Reporting back on this since I pick up a minitruck early next week and have just paid all my fees. Tariffs on minitrucks are 10% more of the purchase price then the previous tariff. So, vans are now 12.5% when they were 2.5% and trucks are now 35% when they had been 25%. HTS codes remain the same. Also, now a bond is required for all purchase prices over $250. It had been purchase prices over $2500. This changes the Entry from informal to formal and added another $70 in bond fees.
Thanks for the info, it's getting really hot for small importers... I was just looking at buying a mini truck by winter, I think I'll speed things up. If it goes to 50% fees, it will kill the market. I hope there will be some clarifications soon, because it's unclear for everyone. Keep us informed as soon as your broker has something concrete!
It’s exactly as I said in the May 21st post above for now. I picked it up at the port last Tuesday. If I buy one today, and then it takes at least a month to find shipping and another month to get here, who knows what the tariff will be then. That makes it hard to buy even when I find a deal.
If memory serves me correctly, I believe there was a "carve out" in the latest round of tariffs that exempts the KEI trucks from any additional tariffs other than what has traditionally been applied. I would suggest speaking to your broker for clarification. Even if it did apply (but I don't think it does), if an additional $800-$ 1000 is going to break your KEI Truck budget, you should reconsider the purchase. The cost of the tariffs will be the least of your issues.
No, tarrifs are 10% more then previous Kei tariffs. I just paid them two weeks ago. So, passenger Kei’s are now 12.5% (was 2.5%) and Kei trucks are now 35% (was 25%). Additionally bonds are now required on all purchases prices over $250. This was only required on purchases above $2500 in thr past. This turns the entry from informal to formal requiring more charges for the bond and formal entry. In my case this was another $150 in fees.
