Automakers across the globe are working out their plans to survive President Trump’s new 25% tariff on imported vehicles and parts. Some, like Audi, have simply suspended shipments. Others, like Mercedes-Benz, will instead eat the cost instead of passing it on to the consumer. However, some automakers may not have that luxury. Ineos is one of them. The small off-road SUV and truck manufacturer will raise prices up to 10% to combat the new cost of doing business in the US.
Ineos Says It Has To Raise Prices
Ineos was able to shield its SUV, the Grenadier, from a massive price increase. 5% more than the SUV’s old starting price means buyers will now pay $80,455 to start for the retro-look French-built SUV. However, the Quartermaster, the automaker’s off-road truck based on the Grenadier, isn’t getting off so easy. It’s already subject to a higher tax rate thanks to a ’60s-era tax on imported trucks. Compounded with the new tariffs, and the Quartermaster will cost nearly $14,000 more than the SUV, starting at $94,500. It’s an 11% increase in price for the luxury off-road truck.
“Now that we’re all in a new era of uncertainty, I think it’s crucial for us to be really clear with our customers. It’s costing us 25% more today to sell a Grenadier in the US than it was a few days ago.”
Ineos’ CEO says it’s not possible to eat the tariff costs, as some automakers have pledged to do: “With orders placed from April 3 onwards, we’ve sheltered customers from the full impact of the tariffs, but it’s just impossible for us to absorb the whole 25% tariff cost.” That means buyers with existing orders alone are protected from tariff costs. An order placed today would be subject to Ineos’ new pricing structure.
Existing Inventory Won’t Be Affected By Trump Tariffs
Ineos’ dealer inventory won’t be affected, however. It provides some breathing room to customers who are looking to buy an Ineos but don’t have an existing order. Lotus recently promised the same, telling order holders that instead of receiving their 2025 model year cars, they could pick up existing models off dealer lots instead. It’s not perfect, but to many, it’s likely better than paying between five and 11 percent more for their cars.
Interestingly, Calder blames EU political leaders for failing to negotiate a trade deal with Trump, not the President himself: “The responsibility for this situation lies at the feet of EU politicians who have failed to negotiate an equitable automotive trade deal with the US, despite the warnings. I desperately hope that they are working around the clock to positively resolve the impasse, rather than escalate it and trigger a trade war.”
TopSpeed’s Take
Calder blames EU political leaders for their failure to negotiate a deal with Trump, and it’s an interesting look at how things are being looked at on the other side of the Atlantic. The European automotive industry will no doubt be feeling strained as a result of the President’s tariffs, and his seeming unwillingness to alter the 25% imported vehicle tariff is going to continue to cause disruptions to both the global economy and the automotive supply chain. While politicians make trade war, consumers will be the ones who pay, regardless of any claimed long-term benefits made by the Trump Administration.
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