Could U.S. tariffs drive Welsh consumers towards electric vehicles?
Could U.S. tariffs drive Welsh consumers towards electric vehicles?
The ripple effects of the U.S.-China trade war were tremors felt throughout the world.
It can’t be overstated just how much global markets were frenzied as a result of U.S. President Trump’s universal tariffs—none more so than the economic strike dealt to its fellow superpower across the Pacific.
Tensions and tariffs have now cooled, but the aftershock remains largely unknown. One unexpected perk from all the chaos, however, could be an upturn in the electric vehicle (EV) market across Europe.
That’s according to Richard Seaward, Head of Strategic Development at Sinclair Group.
Sinclair Group is Wales’ largest family-owned car dealership, with an annual turnover of £500 million, and is currently celebrating its 80th year in the trade.
“Electric vehicles are definitely the biggest disruptor currently in the market;” said Richard.
“Then you throw in the impact of Trump and his tariffs. Who knows where that’s going to take you. I think if European manufacturers can’t send their cars to America, they’ll have to try and send them to the European markets and the UK markets. Oversupply only means one thing as far as the consumer’s concerned. That means cheaper prices.
“Because they’ll have to apply discounts to try and persuade the customer to buy their car over anybody else’s. And that’s at a time when the Chinese manufacturers who, potentially were looking at America as a market, but obviously that’s going to be very, very tough, they were already creating dealerships franchises within the UK and within Europe.
“So, they’re in a good place to take advantage of the fact that there’s a market that is ready to receive a lower priced electric vehicle product, which is exactly what they’re able to offer without any real drop in quality.”
Chinese goods sold in the U.S. are now subject to a blanket 10% tariff, but many sectors have been hit harder—including the EV market.
Any Chinese-made EV sold in the U.S. would be subject to at least a 100% tax, effectively pricing them out of the market.
Sinclair has adopted the Chinese-owned BYD brand, establishing the franchise in South Wales.
“I think [cheaper prices] could be one of the fallouts of what he’s done. Now, I wouldn’t like to say that was a deliberate strategy on his behalf, but yes, I think that you could absolutely, by the way that the laws of demand supply work, if we are receiving an increased supply as a result of one market shutting down across the Atlantic, then that can only have one impact on prices.”
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