US imposed 25% tariff on cars: should we expect price increases for cars in Azerbaijan?

The new 25% customs duties imposed by the US on April 3 on imported cars are beginning to seriously affect not only the American market but also the cost of vehicles supplied to Azerbaijan.

According to car transportation specialist Beyrak Mammadli, the price impact will primarily affect older models.

"The increase in duties will lead to increased production of domestic American brands and lower prices for these cars. At the same time, the cost of cars produced outside the US will rise. In the next decade, our country will clearly notice the price increase of European vehicles produced before 2025. This decision will inevitably provoke a partial price increase for older models as well," warns the expert.

Another specialist, Ziya Ibrahimov, notes that the 25% duty has already caused a price jump of $1,000-5,000.

"The difference can reach $2,000. A good car without damage was previously sold within the range of $4,500-5,000. But after the introduction of duties, America itself will not want to release them cheaply, so a price increase of at least $900-1,000 is possible. Road expenses, additional excise taxes - all these factors are increasing, which inevitably affects car prices," emphasized Z. Ibrahimov.

It is important to note that currently the main part of used cars imported to Azerbaijan are of American and Korean origin. Cars from the US are in high demand in the country due to their good technical condition and affordable prices.

More details in the report prepared by Xəzər Xəbər: