How Tariffs Will Affect Honda

What are Tariffs?

Tariffs play a key role in the trade policy between nations. As a tax imposed by one country on the goods and services imported from another country, tariffs aim to protect domestic industries from foreign competition, raising the prices of imported goods. Historically, tariffs have been used to raise government revenue, promote trade, and encourage domestic spending. Tariffs can also be used as a retaliation tactic by one government to another's whose trade policies it deems unfair. Beyond this, retalitory tariffs can also be  used as response to political or military actions of another government, making their imported goods more expensive for consumers.

How are Tariffs Affecting the Car Industry?

The United States goverment instituted a 10 percent baseline tariff on all US imports with escalated tariffs on certain countries, with the goal of "Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,". This would essentially impose individualized reciprocal tariffs on countries the United States has the highest trade deficits with. 

It was also announced that 25 percent tariffs would be placed on automobiles and certain automobile parts imported into the United States in addition to tariffs already placed on these goods. On condition to expand tariffs on additional parts if necessary, this applies to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans), lights trucks, and parts such as engines, transmissions, powertrain parts, and electrical components.

How will Tariffs affect Honda Vehicles?

Based on Honda's strong commitment to its customers, there will not be price adjustments at this time.

Honda's long-standing motto, "build where we sell", is both a source of pride to the company as well as an added benefit in these times. Because of this, in the scope of inevitable financial impact, Honda is in a better position than most when facing the impact of tariffs. 

Honda's will continue its commitment and development of operations in the United States:

⬝ U.S. plants build nearly two-thirds of the Honda and Acura vehicles sold in the United States.

⬝ $25 billion in capital investment, $1.5 billion in R&D, and 12 manufacturing plants in America.

⬝ $1 billion recently invested on the retooling of Ohio plants to build the vehicles of the future here in the United States.

⬝ 100% compliance with USMCA policies,  even Honda/Acura vehicles assembled in Canada and Mexico have significant US-sourced content.

⬝ Consistent leader in the number of vehicles topping the Cars.com ‘American-Made Index’ since it began in 2006. Last year, nine of the top 20

⬝ spots were held by Honda and Acura models.

Proctor Honda is Here to Help

While navigating these times, it is hard to say what will happen in the coming months. As a valued customer of Proctor Honda, we advise you stay informed about about any updates to the tariff policy and potential auto price changes.

Moving forward, here are some tips when buying a vehicle:

⬝ Choose US-built vehicles and parts over imported ones when possible. 

⬝ Take advantage of Manufacturer incentives. View Proctor Honda's here.

⬝ Be flexible on your car preferences. You may want to look into lower trim vehicles or buying CPO.

⬝ Considering buying soon. If you are in the market for a vehicle, it may be better to buy sooner than later.

The Honda Commitment

With the information available, it is predicted for New and Used car prices to increase considerably. Despite this, Honda is firm in its dedication to it customers, making every effort to limit the impact of tariffs. To honor this, Honda is not making any adjustments to pricing at this time.

For further questions or any car-related needs, contact us at Proctor Honda.

Serving the Tallahassee area for over 100 hundred years, The Proctor Dealerships remains dedicated
to the belief it was built upon: