Slightly OT - parts prices and tariffs

[Jonny042]

I don't want to stir up some kind of political s#%$storm in the technical forum, so let's please keep to the facts if we can...

But... are y'all freaking out yet about the 25% tariff on European parts?

Just as a data point, I purchased 4 CV joints from our host a few weeks back at $79.00 each.

I just checked the price on the same part and it's now listed at $110.00, a whopping 39% increase.

Much of that would be attributed to the tariffs being 10 times(!) what they were, but the US dollar is taking a kicking, as well - after hovering around 1.45 for a few years it's now up in the mid 1.50's. So that would account for the remainder of the increase.

That's only a single data point, however, and a price check on genuine parts from Porsche doesn't reveal any increase yet that I can see. Same goes for fuchs wheels from Fuchsfelgusa, a 16 inch is still in the $1200 range.

I know it's early days yet and they just came into effect, but wonder what you guys are seeing so far.

[911 Rod]

Just like COVID times, people are taking advantage and increasing their profits and try to place the blame elsewhere.

[Winter]

I’m not too deeply about prices as one probably shouldn’t be in the air-cooled 911 game if you’re on a budget (that’s why God invented VWs, LOL). That being said, I did preemptively purchase the spade fuse upgrade kit from Adapt Motorsports a couple of weeks ago, despite nothing in the news about CH being targeted with tariffs (not surprising, as Switzerland is known more for financial services versus manufacturing).

[proporsche]

simple answer, is not the tariffs but greed...
Ivan

[911 Rod]

Originally Posted by Winter

I’m not too deeply about prices as one probably shouldn’t be in the air-cooled 911 game if you’re on a budget (that’s why God invented VWs, LOL).

Is it wrong for me to call you a pompous ass?

[Jonny042]

Just to be clear, I pointed out in my OP how the tariffs and devaluation of the US dollar account for nearly all the increase in that particular part.

I didn't mean to insinuate that there was any gouging or profit taking by Pelican Parts.

[Winter]

Originally Posted by 911 Rod

Is it wrong for me to call you a pompous ass?

Is it wrong for me to call you a clueless idiot?

[David Inc.]

I'll play unbiased observer.

Originally Posted by 911 Rod

Is it wrong for me to call you a pompous ass?

No, but it's not polite.

Originally Posted by Winter

Is it wrong for me to call you a clueless idiot?

Yes.

[ant7]

Originally Posted by david inc.

i'll play unbiased observer.



No, but it's not polite.



Yes.

[911 Rod]

Originally Posted by David Inc.

I'll play unbiased observer.
No, but it's not polite.
.

Glad I didn't

[Glenfield]

Jonny, it is a little worrying.

Regrettably, Covid demonstrated that demand by certain consumers in certain categories is far more inelastic than once thought. Those prices skyrocketed well above cost inflation (and salaries) and are here to stay. A "new normal". We may see some more of that "post-Liberation Day" and Porsche is a very target rich environment for inelastic consumer demand ... would be regrettable for this hobby to become even more exclusive.

On the Partzilla you called our, that's a big jump. There is only a 10% tariff in effect today (I believe). The dollar has devalued but certainly not by enough to bridge the then price to the now price.

[Jonny042]

Originally Posted by Glenfield

There is only a 10% tariff in effect today (I believe). The dollar has devalued but certainly not by enough to bridge the then price to the now price.

There is a blanket 10% on everything, from everywhere. But imported cars, and parts, are much higher, at 25%.

I guess the reasons that I'm not hearing about this much in the forums are many - China is grabbing the headlines, it's hard to keep track of the tariff rates, the effective dates, and the rollbacks and adjustments. Also the inevitable delay in the price increases actually getting to the consumer, which is still a long way off.

There are various reports of Porsche rushing inventory into the US ahead of the tariffs, and they are going to have a few months of inventory on hand but that's going to get used up pretty fast.

[ian c2]

You’re in Canada aren’t you ?

[Jonny042]

Originally Posted by ian c2

You’re in Canada aren’t you ?

I am - but 90% of the parts and supplies I buy for my hobby and business are from US companies and shipped to Minnesota and imported by myself personally. So if I purchase a European part from Pelican, for instance, I'll be paying the US tariff as part of the price.

This is already starting to hit home for us on some things - some tire companies, for instance, have only a North American distribution hub that supplies Canada and the US so those prices have already increased greatly.

[walt]

Originally Posted by Winter

I’m not too deeply about prices as one probably shouldn’t be in the air-cooled 911 game if you’re on a budget (that’s why God invented VWs, LOL). That being said, I did preemptively purchase the spade fuse upgrade kit from Adapt Motorsports a couple of weeks ago, despite nothing in the news about CH being targeted with tariffs (not surprising, as Switzerland is known more for financial services versus manufacturing).

I purchased the front fuse kit in February for $352 and now at $381, an 8.2% increase.

[Glenfield]

Oh wow. Case in point. Didn’t know that 25% was already applied to auto and parts. It’s all very opaque which as you say, is part of the problem. A 25% increase on today’s prices will be pretty difficult to digest for a lot of the auto end-market. For the hobby corner, it will just make it a little less fun.

[Jonny042]

Originally Posted by walt

I purchased the front fuse kit in February for $352 and now at $381, an 8.2% increase.

That brings up an interesting point - the $800.00 de minimus exemption is intact, for now (unless it's from China), so if your shipment is less than that in total value, you would be able to import a small purchase to the USA without the 25% tariff.

[Jonny042]

Originally Posted by Glenfield

Oh wow. Case in point. Didn’t know that 25% was already applied to auto and parts. It’s all very opaque which as you say, is part of the problem. A 25% increase on today’s prices will be pretty difficult to digest for a lot of the auto end-market. For the hobby corner, it will just make it a little less fun.

The whole thing is a bit of a cluster-munch.

Hopefully cooler heads prevail. The UK deal announced in the past day or two got the 25% down to 10%, but only for the first 100,000 vehicles. So maybe that's a template for things to come, especially for Europe.

FWIW Europe has had a 10% tariff on US made vehicles for some time, so there is some reciprocity, although the number of Fords and Chevys sold in the EU is probably miniscule compared to the market for BMWs and Mercedes in the US.

From my perspective as a very, very, very small maker in Canada (I like to call us North America ), my parts are USMCA compliant and with a bit of care to get the paperwork right, can be imported to the US without duties or tariffs. However the clearance process is now taking forever. The last few shipments to the USA were delayed by 1 to 2 weeks over the usual week or so. It's stressful as a seller to check tracking every day for two weeks hoping you can finally stop worrying about the shipment and pass the good news on to the customer.

Luckily, Pelicans are good people and seem to be patient and understanding

[Jeff Alton]

All EMPI dealers got a letter today from them warning of rising prices due to tariffs on the parts in their catalogue that are not made in the US.

Cheers

[Uwon]

I got hit with a $400 tariff charge on my last order from Pelican because Pelican had misclassified the whole order as made in the USA. A quick call to Pelican support got me a corrected commercial invoice which eventually straightened things out. AMX was also very helpful by putting a hold my payment to FedEx pending correction.
Thought this might be of interest to some of you.
Cheers,
Johan