Trump fees raise the prices of used cars in Lebanon

Trump fees raise the prices of used cars in Lebanon: a comprehensive analysis of the effects of American customs duties on the Lebanese market

In a move that sparked widespread controversy, US President Donald Trump announced the imposition of 25% customs duties on imported cars and spare parts, as part of a policy aimed at protecting the American industry. Although these fees target imported cars to the United States, their effects extended to external markets, including the Lebanese market, where the prices of used cars witnessed a remarkable increase.

The impact of American customs duties on the Lebanese market

Lebanon is one of the countries that rely heavily on importing used cars, especially from the United States of America. According to a report issued by “6wrestarch”, the Lebanese used car market is witnessing remarkable growth, with expectations for increasing demand in the coming years.

With the imposition of American customs duties, the prices of used cars imported from the United States increased by 15% and 20%, which led to an increase in selling prices for Lebanese consumers. For example, the price of the “Jeep Grand Cherokee” increased from $ 7,000 to about $ 10,000.

The impact of the height of the customs dollar in Lebanon

In addition to the American drawings, the Lebanese government decided to raise the price Dollar Customs from 1,500 pounds to 86,000 pounds, which led to a significant increase in customs duties on imported cars. According to a report published by the “Call of the Homeland”, customs duties on some used cars increased by more than 500%.

For example, the customs duties on the 2017 Mercedes S550, from $ 4,787 to $ 27,660. The fees for the 2018 Range Rover Villar also increased from $ 4,628 to $ 31,915.

Functions on the used auto sector in Lebanon

The height of customs duties led to a significant decline in used car sales in Lebanon. According to the captain of the owners of used car showrooms in Lebanon, Walid Francis, the sales movement decreased by up to 85%, and closed more than 65% of the exhibitions.

Francis pointed out that customs duties increased randomly without studying or a clear economic plan, which negatively affected the sector and consumers alike.

Impacts on Lebanese consumers

The high prices of used cars led to reducing the ability of Lebanese citizens to buy cars, especially in light of the economic crisis that the country suffers from. Francis stated that the Lebanese citizen, who was buying a car with customs duties of $ 2,000, is now forced to pay a fee of up to $ 18,000, which makes him reluctant to buy.

Impacts on the Lebanese economy

The used car sector is one of the vital sectors in the Lebanese economy, as it contributes a large percentage to the state’s revenues from customs duties and taxes. As sales decline, the state’s revenues from this sector are expected to decrease significantly.

conclusion

Recent developments in American and Lebanese customs policies show a major impact on the used car market in Lebanon. While these policies aim to protect local industries and increase revenues, they led to a significant increase in prices and a decline in sales, which negatively affected the Lebanese consumers and economy in general.

Therefore, it is necessary for the Lebanese government to reconsider its customs policies, and a balance between achieving revenues and protecting consumers and vital economic sectors.