Trump fees raised the prices of cars … Here are the numbers

Patricia Jalad – Call of the homeland
It is true that the American president has currently suspended the increase in the customs duties that he imposed on the countries from which his country imports, including Lebanon (10 %), but he is still reluctant to suspend the 25 % fee on the cars imported by the United States from other countries, despite the leaks that he is studying the possibility of suspending his decision as well. The decision to increase the fees on cars appears at first glance away from Lebanon, given that the increase extends to imported cars to America, not exports, to appear later that it affects the core of the used car sector.

About two weeks after Trump’s decision to impose customs duties on car imports and “cut” (the second part enters the application on May 3), that is, imported cars spare parts, such as engines and movement of movement to the United States of America by 25 % to stimulate the American national industry, hinted about 7 days ago that they can be suspended in a manner that has come after a large number of global auto manufacturers intercepted this measure, which would have that it would be It is caused by great losses, as a result of the decline in its exports in the automotive sector to the United States due to the increase in the value of cars sales in America.

Experts consider that Trump’s hint to suspend this decision for a short period does not give the car makers the opportunity to control and correct the course of the import chain, although the exemption of “cutting” cars from the fees that has not yet entered the application, supports the industry amid the repercussions of the trade war imposed by the American President.

The customs recognition imposed by the Trump administration on cars will lead to a decrease in annual cars sales by two million units in the United States and Canada, based on a report by Reuters.

However, what about Lebanon?

Before sending in answering the question, we return to the pre -2019 stage, and at that time Lebanon was importing from the world annually about 40 thousand used cars, and when the financial and economic crisis exploded and the purchasing power is collapsed with the collapse of the value of the national currency about 1,000 times, the import of cars decreased despite the fact that its numbers increased before the exchange rate of 89,500 pounds in customs duties … In this context, the captain of the car importers says User Elie Qazi for the “Call of the National” that “there are no accurate statistics currently about the number of imported cars, because its quantities actually increased after the end of the war, i.e. since the end of last year 2024. The sale of cars needs a good economic and security situation due to the risks that the car that parks the road is on, and the risks cannot be blocked.”

Immediately after Trump announced his intention to increase the fees for imported cars to his country, the car prices increased immediately, although we are still in a phase of anticipation due to the US president’s hesitation to move forward in increasing or suspending the percentage of 25 %, on cars and cutting cars imported from outside America to manufacture cars.

Where does Lebanon buy cars?

Based on my unborn, “Lebanon buys from the United States of America all kinds of cars, not only American cars (such as“ Grand Cherokee ”and“ Camaro ”…), but Japanese cars, BMW and Mercedes… The United States annually exports 40 million used cars to the world and is the first in global export.

As for the reason for importing the majority of cars used from America, it returns, based on my toxi, to the following:

1- Cars imported from Europe for example, their number is small, as they do not meet in terms of specifications, the requirements of the Lebanese market, similar to cars imported from the United States of America of any kind.

2- Japanese, British and Australian cars are usually on the right, so it is not possible to import from the source countries to Lebanon. As for Korea, we cannot also import used cars because the cost of importing used cars from Korea is more expensive than the new, because the customs drawing of the new Korean car is less than the customs drawing of the used Korean car.

Lebanon is not the only country that depends on the United States of America to import used cars, but there is Jordan, Iraq and Dubai. On the current price of the car, Qazi says: “The price of any car that is imported from America has increased at least 2000 USD, an increase of 15 %, in response to a first verb on the decision to increase the fee of the 25 % customs. For example, the “Grand Cherokee” pocket was imported at a value of 6 and 7 thousand dollars today at a price of 10 and 11 thousand dollars, and the turnout extends all types of American and European cars from the “Mercedes” to the BMW, “Audi” and “Cherokee”.

Today, with the creation of market offices in implementation of the traffic law and the demand of these offices to buy the “Picanto” cars that are used to drive driving and conduct the market exam, Qazi says that “these cars are provided from the local market and are not imported from abroad within imported cars, since the customs fee alone for that car costs $ 5,000 without calculating its price and the cost of shipping, which may cost 13 thousand A dollar if the “model” 2018, while its import is new, costs the company a customs fee of only $ 600.

Given its high cost, importers used in Lebanon focus on importing medium -sized cars, not small. But how is the used car fees calculated?

The arithmetic equation for fees
The value of the imported used car is calculated according to the value specified in the American Blue Book (which determines the price of the car according to each pen, i.e., according to the “kilometer”, but it is not applied in Lebanon in its entirety as it is calculated by the middle pen), customs drawing and value -added tax. While the new imported car is determined by the customs drawing based on the value specified in the bill.

According to the computational process, the customs fee rate in Lebanon is 5 %, to which a consumption fee is added by 45 %, then the value -added tax by 11 % + 3 % contained in the budget, which is equivalent to 64 % of the value of the car.

This is except for mechanics, registration, and the 5 % increase rate, which was included in the 2025 budget (the price and value of the car and customs) on used cars.

Based on the BlueBook book, if the price of the car specified in it is 10 thousand dollars and the importer bought it at $ 5,000, it is priced at a value of $ 10,000 in Lebanon.

On the revenues of these fees on the state, Qazi says: “The imported cars sector enters the state treasury customs fees and TVA worth $ 600 million, which constitutes about 20 % of the state treasury revenues, and thus the imports of used cars are the second product in Beirut port after the oil sector.”

And about the possibility of competition between new and used cars, Qazi says: “The new car is only competing with small cars. The used car market is “stronger” than the new cars market in medium and large cars. Thousands of Lebanese buy used cars, while 100 or 200 individuals buy a new car from the company. ”

Regarding the entry of Chinese cars to the Lebanese market and the price competition, he believes that the Chinese car market will not be large due to the multiplicity of names, unlike the Korean cars, which recorded success through the Kia and Hyundai cars, except that it does not maintain its purchasing value.

The security and political positions
From the experience that we have lived in the past years, it becomes clear that the car import market depends on the security and political situation in the country. The purchase of used cars did not return its activity immediately after the war ended, but its activity returned about two weeks ago, considering that the security situation is unstable in a comprehensive manner on all Lebanese lands and the stage today is still cautious, knowing that the sector will not be activated if the banking sector is not restructured, loans to the cars and improves public sector salaries, then the sales of the used cars will increase by 50 %. Today, Trump’s “customs” policy will remain that will determine the high rate of the high and large price of the car that is exported to Lebanon from the United States of America.