RHO Pricing with new Tariffs

[Plm-Crzy]

President Trump signed a proclamation today placing a 25% tariff on any vehicles not built in the USA.

I know the RHO is assembled in Michigan; however, the engine is built in Mexico and I’m sure other parts are built in Canada, Mexico, and other countries.

So with that said , will there be a price increase on RHOs due to the new tariffs going into effect on April 2nd.

If so, are RHOs that are already on order going to change the already agreed to price?

Thanks!

 

[Rebel2RHO]

President Trump signed a proclamation today placing a 25% tariff on any vehicles not built in the USA.

I know the RHO is assembled in Michigan; however, the engine is built in Mexico and I’m sure other parts are built in Canada, Mexico, and other countries.

So with that said , will there be a price increase on RHOs due to the new tariffs going into effect on April 2nd.

If so, are RHOs that are already on order going to change the already agreed to price?

Thanks!

I can’t see how a price increase can be made on a signed contract that’s in place

 

[Mikey Swift]

Is the plant in the US?? Yes...quit with these nonsense inflammatory posts.

 

[PuffDr4gon]

already agreed to price

...

 

[AFX]

I can’t see how a price increase can be made on a signed contract that’s in place

When I was going to do a build, they said you have it at the contracted price. The only variable would be the incentives at time of delivery. So I was told. Not a lawyer, but I slept at a holiday Inn, it’s the contracted price.

 

[MattH89]

I live in Michigan where the RHO is made and can confirm we are indeed part of the United States. Sorry for any confusion.

 

[Webbo]

I live in Michigan where the RHO is made and can confirm we are indeed part of the United States. Sorry for any confusion.

“USMCA-compliant automobile parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.”

Looks like they are looking at how to tariff individual parts coming in. But what isn’t clear is if they are going straight to a US assembly plant, does that tariff get waived?

 

[eltaco]

I live in Michigan where the RHO is made and can confirm we are indeed part of the United States. Sorry for any confusion.

Yeah, unfortunately that isn’t how it works IF the US declares duty rates on parts or materials imported into the US.

It will be interesting to see how it plays out… but it’s not entirely out of the question at this point that some outsourced components for US auto makers will incur a higher BOM cost.

I’m in the same boat, OP. Very curious to see what happens to pricing. I don’t think my order is in jeapordy, but I wouldn’t be surprised to see 2026 MY price increases resulting.

 

[MattH89]

Sorry guys I was responding to the specific tariff that was placed on imported automobiles referenced in the OP, not the theoretical ones still under consideration. My bad.

 

[Plm-Crzy]

Is the plant in the US?? Yes...quit with these nonsense inflammatory posts.

Not sure what you mean keyboard warrior.

I'm asking a question because I ordered a RHO and was wondering if anyone has been told that the auto tariff was going to impact their pricing.

I sent the same question to the Sales Manager that I ordered the truck from.

BTW. I'm 100% America First!!!

 

[RHOfan]

Here is Subaru’s plan…no price protection! It makes sense as their costs could increase dramatically overnight.

I have read from a reputable source that components built outside the US, but shipped to US assembly factories, WILL be subject to tariffs. Plenty of RHO parts come from Mexico. I’m pretty sure the engine is built there.

If the tariffs are enacted & hold, RHO prices will go up. I doubt there will be any price protection if you haven’t taken delivery. How can they, if their costs are going up dramatically overnight?

 

[rhinonow]

Here is Subaru’s plan…no price protection! It makes sense as their costs could increase dramatically overnight.

I have read from a reputable source that components built outside the US, but shipped to US assembly factories, WILL be subject to tariffs. Plenty of RHO parts come from Mexico. I’m pretty sure the engine is built there.

If the tariffs are enacted & hold, RHO prices will go up. I doubt there will be any price protection if you haven’t taken delivery. How can they, if their costs are going up dramatically overnight.

Well theoretically the sold orders already have parts in the country from before the tariff was enacted. Guess it depends how old your order is. But there’s loads of people who have already built trucks that won’t be in their hands for a month due to shipping delays. No way they get shafted by tariffs on top of it all lol

 

[RAM-Ranch-MT]

Here is Subaru’s plan…no price protection! It makes sense as their costs could increase dramatically overnight.

I have read from a reputable source that components built outside the US, but shipped to US assembly factories, WILL be subject to tariffs. Plenty of RHO parts come from Mexico. I’m pretty sure the engine is built there.

If the tariffs are enacted & hold, RHO prices will go up. I doubt there will be any price protection if you haven’t taken delivery. How can they, if their costs are going up dramatically overnight?

im sure every lesbian with a subaru pre order is seething right now HAHA!

 

[RHOfan]

Well theoretically the sold orders already have parts in the country from before the tariff was enacted. Guess it depends how old your order is. But there’s loads of people who have already built trucks that won’t be in their hands for a month due to shipping delays. No way they get shafted by tariffs on top of it all lol

That kind of thinking put thousands of gas stations out of business during the early 70s gas/oil crisis.

The stations were pumping fuel out of tanks that had been filled when gas was $.25/gallon, so they didn’t increase prices. BUT, when it came time to re-fill those tanks & the gas was $1.25/gallon, the station owners didn’t have the cash to pay for new gas!

I’m predicting Ram will publish a deadline & pending orders will be notified. People who don’t like it will get their money back. But, Ram is not going to sell multiple units below their cost.

This is new & uncharted territory for most of us, so be patient. It’ll all work out.

 

[eltaco]

I pulled a window sticker this morning and saw 55% of the RHO parts content was US/Canadian, 39% is Mexico. Since US specifically isn’t called out, we might assume less than 50% of the parts cost in this vehicle is US.

It takes a lot of effort on the manufacturer side to understand the total cost of tariff to the overall bill of materials. We also don’t know what percentage of the vehicle cost is material, labor, and overall markup. It’s really difficult for a customer to forecast how this will impact future costs… it’s early for even manufacturers to know that impact.

Time will tell, but it’s helpful to know sold orders aren’t even price protected. That makes me nervous as I await production and delivery on my February order. If my price goes up before delivery, there’s a good chance I’ll hold off on a purchase until a later model year… if even completing a purchase at all.

 

[MattH89]

I'm 99.9% sure my order paperwork with MD protected me from a price increase. Maybe not all dealers explicitly call that out, but theirs did.

 

[RHOfan]

I'm 99.9% sure my order paperwork with MD protected me from a price increase. Maybe not all dealers explicitly call that out, but theirs did.

I hope you are correct and there is not an exclusionary clause that calls out factors beyond their control or Ram’s control.

Pretty sure there is a clause that gives customers an out if the order is not fulfilled in a specified period of time. Most contracts have to be “balanced” in rights given to both parties or else they can be judged “unenforceable”.

Time will tell if these tariffs are actually enacted & actually hold. I have my doubts.