Why Tariffs Have the Potential to Change the Automotive Landscape
President-elect Donald Trump’s proposed tariffs on imported goods have sparked widespread discussion, particularly in the automotive industry. While these tariffs are not yet in effect, the potential changes have already caused ripples among manufacturers, dealerships, and consumers.
The proposed tariffs could include a 10-20% tax on imports from countries like Japan, Germany, and Mexico, and up to 60% on goods from China. If implemented, these taxes would increase the costs of imported vehicles and parts, which may be passed down to consumers in the form of higher prices.
For now, these tariffs remain hypothetical, but the uncertainty is enough to prompt many buyers to reconsider their options. Vehicles manufactured in the United States are emerging as an attractive choice, as they are less likely to be affected by these potential cost increases.
The Benefits of Choosing U.S.-Made Vehicles Under Future Potential Tariffs
Opting for vehicles manufactured in the United States offers several advantages, especially during this period of uncertainty around trade policies:
Price Stability: U.S.-made vehicles are less vulnerable to price hikes that might result from tariffs on imported cars and parts. This can provide buyers with more predictable pricing in a shifting market.
Shorter Supply Chains: Vehicles produced domestically are less affected by international supply chain disruptions, ensuring steadier inventory levels and faster delivery times.
Support for Local Jobs: Purchasing U.S.-manufactured vehicles helps sustain American jobs and contributes to the domestic economy, especially in states with strong automotive industries.
Diverse Options: From reliable sedans to innovative electric vehicles and luxurious SUVs, the U.S. market offers a wide range of domestically assembled models to suit all preferences.
By prioritizing U.S.-assembled vehicles, buyers can sidestep many of the uncertainties associated with potential tariffs while supporting local manufacturing.
Top Brands and Models Manufactured in the United States
If you’re looking to avoid the potential impact of tariffs, here are some top brands and their U.S.-assembled models to consider. Keep in mind that these US-based plants are not responsible for the total global production of these models, but rather a percentage:
Mass-Market Brands:
Ford:
F-150: Built in Dearborn, Michigan, and Claycomo, Missouri.
Explorer: Assembled in Chicago, Illinois.
Mustang: Manufactured in Flat Rock, Michigan.
Chevrolet:
Silverado: Produced in Flint, Michigan, and Fort Wayne, Indiana.
Malibu: Assembled in Kansas at the Fairfax Assembly Plant.
Toyota:
Camry: Manufactured in Georgetown, Kentucky.
RAV4 Hybrid: Produced in Georgetown, Kentucky.
Tacoma: Assembled in San Antonio, Texas.
Electric Vehicles (EVs):
Tesla:
Model 3 and Model Y: Produced in Tesla’s factories in Fremont, California, and Austin, Texas.
Model S and Model X: Assembled in Fremont, California.
Ford:
F-150 Lightning: Assembled in Dearborn, Michigan.
Rivian:
R1T and R1S: Manufactured in Normal, Illinois.
Luxury Vehicles:
BMW:
SUVs including the X3, X5, and X7 are built in Greer, South Carolina.
Mercedes-Benz:
Models such as the GLE and GLS are assembled in Vance near Tuscaloosa, Alabama.
Choosing from these U.S.-assembled options can help mitigate potential cost increases associated with tariffs while still offering a wide range of styles, features, and capabilities.
Leveraging Montana LLCs to Offset Costs
Amidst the uncertainty of potential tariffs, registering your vehicle under a Montana LLC is a strategy to save money and offset rising costs. Montana stands out as one of the few states with no sales tax, making it an attractive option for vehicle purchases, especially high-value models like luxury cars, RVs, and high-end electric vehicles (EVs).
Here’s how LLCTLC can help you leverage the benefits of a Montana LLC:
Eliminate Sales Tax:
By registering your vehicle under a Montana LLC, you can avoid paying state sales tax, which can save you thousands or even tens of thousands of dollars, depending on your home state’s tax rate and the cost of your vehicle. For example, a $100,000 vehicle in a state with a 7% tax rate would save $7,000 in taxes.
Simplify Registration:
LLCTLC handles the entire process for you, including forming your Montana LLC, managing paperwork, and ensuring compliance with Montana laws. This streamlines the process and removes the hassle of dealing with state requirements.
Protect Privacy:
Registering through a Montana LLC shields your personal information, as the LLC becomes the legal owner of the vehicle. This adds an extra layer of security and anonymity.
Applicable to All Vehicle Types:
Whether you’re purchasing a domestic EV, a luxury SUV, or a high-end RV, registering through a Montana LLC provides the same sales tax savings across all vehicle categories.
Making Smart Choices in a Shifting Market
Navigating the automotive market in the face of potential tariffs requires careful planning and informed decisions. While these proposed tariffs are not yet in effect, the possibility of price increases on imported vehicles and components makes it crucial for buyers to evaluate their options. Choosing U.S.-assembled vehicles not only helps avoid tariff-related price hikes but also supports local manufacturing and supply chains.
To maximize your savings and protect your investment, consider the advantages of registering your vehicle through a Montana LLC with LLCTLC. This strategy eliminates sales tax, simplifies the registration process, and provides long-term financial benefits.
Contact LLCTLC today to learn how we can help you offset rising costs, streamline your vehicle purchase, and make smart choices in a shifting automotive landscape.