Theoretically the short term ramifications of produce and inventory coming out of the USA will not have its prices and taxes influenced unless the Australian government implements retaliatory tariffs.
This means for the short term any Tariffs from the orange man himself will only harm companies that sell into the USA not company’s that buy out of the USA. However if this tariff concept gets legs and starts to cause consumer spending habits within the USA it is likely that the knock on effect will hurt other countries in the form of increased costs or dramatically reduced stock.
If the Tariffs stay around long enough, automotive manufactures that import product into the USA will be likely to be witnessing reduced sales as the cost the consumer rises. In the short term this may actually result in some reduced costs for people buying inventory that wont sell in the USA due to the increased costs to buy it.
So we would expect to see a dip in prices of cars as manufacturers move stock already produced. However is the Tariffs remain in place for a long term manufacturers would likely reconsider the quantity of product made and reduce that amount. Less cars will be sold but operating costs will remain the same. This becomes the formula for a car manufacturer to be forced to increase the retail cost of its product.
Short time the prices of new vehicles may dip but in the long term this could hurt the cost of vehicles in the back end of 2025 and leading into 2026
