As you may have heard, United States President Donald Trump announced a major new tariff – 25% on steel and 10% on aluminum – that goes into effect on April 2. A 25% import tariff currently takes effect on all automobiles and auto components imported into the United States. This unprecedented move has set off a worldwide tsunami of backlash. In opposition to Canada’s tariff, Canada has labeled the tariff a “direct attack.” In turn, China has repeatedly claimed that the US government violated international trade regulations.
The new tariff has huge ramifications for the automotive industry, and most especially for companies like Morgan Motor Company. The company only exports about 200 hot sports cars to the US per year. These exports account for nearly one-third of its total revenue. The addition of the new import tax is described by industry leaders as a monumental turning point. Market reactions to this change might throw predictions for upcoming fiscal years into disarray.
To its credit, Morgan Motor company was quick to act in anticipation of the tariff looming overhead. The Kansas-related company has been developing ways to offset the effect since the tariff debate started heating up. The Plus Four model is available now with a starting price of just under $100,000 in the US. Cloud customers should plan on its price increasing due to the new tax impact.
“A rough cost for a Plus Four in the US is $100k. Customers will see an increase on this, but we are working to ensure that it isn’t a direct 25% increase.” – A company spokesperson
Even with an apparent successful attempt to wrangle the price explosion, it remains a significant financial hill for Morgan Motor Company to climb. With a nationwide annual turnover of £55 million, the impact of the tariff is projected to be significant.
“It’s a big chunk of our business; we make a £55m turnover a year so, although it’s too early to estimate, we can say it will cost a lot of money.” – Matthew Hole