As INEOS looks to grow in the US, it must deal with Trump’s tariffs and the ‘Chicken Tax’ on trucks
Although Land Rover is a new defender, some customers longing for the old Boxy, Body-Frame-on-Frame Brute. In the 70s and 80s, he appeared in every issue of National Geographic.
Enter Ineos Grenadier. Grenadier, the brain of Billionaire Jim Ratcliffe, the founder of London’s Ineos group, is the spiritual successor of these former British off-roads.
The rugged Grenadier went on sale in the US last year, and with approximately 8,000 good sales, things starting from $ 78,900 and aimed at a 50%sales growth. But then Ineos hit President Trump’s tariffs.
Ineos builds vehicles in France, which means that it is under the EU trade restrictions and is shot with a 25% US automobile sector tariff, which may be more if the EU does not make an agreement with the White House until August 1st.
“We find ourselves in the eyes of the storm,” he told Yahoo Finance. “So there was a tariff agreement that was negotiated even once … This did not mean anything to us between England and the United States.” Currently, the UK automatic imports face the US with a 10% tariff rate.
Read more: What do Trump’s tariffs mean to your economy and wallet?
In April, Ineos said it would limit 5% tariff price increases in their vehicles. Although 15% for EU goods such as automobiles is better than a proposed tariff, 25% and more than an alternative, a strange problem affects Ineo with the latest product Grenadier’s van known as The Quartermaster.
“A European -made van attracting a quarter manager at the same time [a] ‘Chicken Tax.’ We bought an absolute pair of Whammy to this vehicle, which is the perfect car for the US market. Cal Calder said.
“Chicken Tax” is the remnant of trade policy from the 1960s. Following European tariffs for US poultry animals, the United States has brought 25% tariff to foreign -made light trucks, which are still a standing trade policy today. At that time, the tariffs in light service trucks were a protective measure against Volkswagen (Vwagy).
This means that there is currently a 50% tariff on the quarter manager starting from $ 92,900.
A quick trade decision cannot come fast enough for European car manufacturers like Ineo. This can focus on the next proposal in the United States, Ineos will focus on both home and range expanding hybrid options and will probably have a lower starter price of medium -sized Fusilier SUV.
And when we look beyond that, Calder said that the option to build Ineos vehicles in the US is on the table. Assuming that it is possible, the movement would make sense for a car manufacturer aiming at the share of the lion from the sales of the states.
