By the time you read this, you probably heard the news that the US had cut tariffs down to 19% for Philippine-made goods. In return, US-made products will have zero tariffs imposed on them when sold in the Philippines.
This being Top Gear Philippines, of course we looked for an automotive angle for it. Given that there are some cars sold here that are made in the US, there might be a chance that those models might get a price cut down the line. After all, with zero customs and duties, it should give the local distributors to lower the prices, right?
With that in mind, we’re listing down some cars that might go down in price following the announcement. There are also a few surprises along the way so keep scrolling down. You might find a car you’d like in the list.
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BMW
You’re probably wondering why this list kicked off with a German brand. For starters, we’re doing this alphabetically, and secondly, yes, there are several US-built BMW products in the Philippines. In fact, one of them is a rather popular model.
Hailing from Spartanburg, South Carolina are the X5, X6, X7, and even the XM. Most of the X models come from that plant, even the ones sold in its home market. Unless you’re a BMW fan or nerds like us, it might come as a surprise. Oh, and Spartanburg has been the home of the X5 since it was introduced in 1999.
What about the X3, you ask? While the current model is made there, the plug-in hybrid models are made in Rosslyn, South Africa. Given that we only get the 30e xDrive variant here, it’s not eligible for that benefit. Speaking of plug-in hybrids, the X5 50e xDrive and XM already have no tariffs attached to them as these are electrified models. The 30d xDrive diesel, perhaps?
Chevrolet
Well, here’s a more obvious brand that could get markdowns soon. As the saying goes, nothing is more American than baseball, apple pie, and Chevrolet, although Ford fans would like to have a word about that.
That said, most of Chevrolet’s local offerings come from South Korea, but we all know which ones are made in the USA. The Suburban and Tahoe are made in Arlington, Texas, while the Corvette rolls out of the Bowling Green, Kentucky line.
Ford
Ford’s best-sellers in the country are far removed from America. With the exception of the Ranger which is sold in the US, most of the local offerings aren’t available there, namely the Chinese-made Territory and Thailand-built (and Australian-engineered) Everest.
Not forgetting its American roots, there are three US-made Ford sold here. The Bronco is made in Wayne, Michigan alongside the North American version of the Ranger. Meanwhile, the Mustang is built in Flat Rock, Michigan and has been the case since 2004. Then there’s the Explorer being a bit of an odd outlier as that one comes from Chicago, Illinois.
Jeep
With the Renegade and Compass no longer being offered here, the two Jeep products sold here come straight from its home market. All variants of the Wrangler only come from one plant in Toledo, Ohio. Meanwhile, the Grand Cherokee is made in the heart of Motown – Detroit, Michigan.
Mercedes-Benz
Oh look, another German brand in the list. The thing is, the Mercedes-Benz models sold here don’t just come from Germany. For instance, the C-Class and GLA are made in Malaysia, and the GLB comes from Mexico. As far as we can tell, the E-Class, GLC, and S-Class come from its motherland. Heck, the G-Class is built in Graz, Austria.
So, what are the American-made Mercedes-Benz vehicles? Assuming the Philippine models come from the US, the models are the GLE, GLE Coupe and GLS, both of which roll out of the company’s facility in Vance, Alabama. Yes, that includes the Maybach version of the GLS.
Ram
And we’re back with another obvious one. Ram only sells one model here, and that’s the gargantuan 1500 Rebel. It’s also the only one of its kind here, as Ford no longer sells the F-150 in the country, and Chevrolet has been out of the full-size pickup game for a good 20 years now. The Ram 1500 Rebel is assembled in Sterling Heights Michigan, although the heavy-duty models (not available in the Philippines) come from Mexico.
Subaru
We finish the list with a surprise. Yes, there is an American-made Subaru sold here, and it’s the biggest model offered in the country. We are, of course, referring to the Evoltis. Evoltis actually the export market name for the Ascent, and we’re the only country in Southeast Asia that gets it. Select countries in Latin America get it too, but regardless of where it’s sold, Subaru’s largest crossover only comes from one plant which is located in Lafayette, Indiana.
Notable absences
You might have noticed that Chrysler and Dodge seem to be missing from the list. That’s mainly because, well, there’s nothing to sell here anymore. Chrysler only makes one model, the Pacifica minivan. Dodge, on the other hand, discontinued the Challenger and Charger, although the point is moot as those cars were made in Brampton, Ontario. Even the revived Charger is still made in Canada, moving from Brampton to Windsor.
Tesla is also another car that’s absent here. The answer in this case is much simpler. The Philippine-market Model 3 and Model Y are sourced from Shanghai, China, not in Fremont, California. US-made Tesla models aren’t offered here, at least for now, and these are the Model S, Model X, and Cybertruck. But regardless of where it's made, these tariffs won’t affect Tesla here as the EVIDA law already imposes no duties on electric vehicles.
Possible comeback?
With the loosening of the tariffs, some cars sold here before could have a chance of coming back. At the top of our heads is the Ford Expedition that recently saw a full model change. Another would be the F-150 as it was pulled from showrooms after a brief renaissance.
Honda can also join the party. Remember the time we got three successive generations of the Pilot? And there was also a time we got the US version of the Odyssey before switching to the slimmer Japanese model.
And then there are models we frequently see sold in the grey market. There’s the full-size Toyotas in the form of the Sequoia and Tundra, along with the occasional GMC Yukon and Cadillac Escalade.
Hold your horses
It will be interesting to see how it all pans out and if prices will actually go down in the first place. The implementing rules and regulations have yet to be shown, along with local content requirements. It will all depend on several factors before we see any inkling of a price adjustment.
If it says that US-built vehicles, regardless of local content (American-made parts, components, etc.), will be exempt from duties, then it’s probably good news for both distributors and consumers. Distributors don’t have to pay up to the nose for fees, while those savings are passed on to its customers. It likely won’t be simple as that, because trade agreements are a matter of business, not total tax avoidance.
However, if there is a certain percentage required that some of the cars mentioned here can’t meet, it will be a different outcome altogether. Then there’s the matter of defining local content in the first place on both sides, and let’s not forget that amendments that need to be made to local tax laws that take a long time to be made.
Fingers crossed we see the implementing regulations soon so we can all get a clearer picture.
