Tariff By Weight

After weeks of argument and revision, the new French tariff on automobiles framed by Minister of Commerce Pierre Etienne Flandin was approved last week by the Tariff Committee of the Chamber of Deputies, recommended for swift enactment. U. S. dealers studied it ruefully, admitted that "it might have been worse."

Instead of the present 45% ad valorem ("according to value") duty on foreign cars, the new French tariff is a tariff by weight. Foreign cars are divided into five classes, taxed as follows:

Cars weighing 1,100 kilograms or less-- 8 francs per kilo (roughly 16-c- per lb.).

1,100 to 1.500 kilos: 9 francs 25 centimes per kilo.

1,500 to 1.750 kilos: 10 francs 50 centimes.

1,750 to 1,950 kilos: 20 francs 75 centimes.

Over 1,950 kilos: 15 francs 50 centimes.

Light and heavy trucks will be taxed 6 fr. 25, and 7 fr. per kilo respectively.

In theory the new French tariff is not discriminatory. In fact it discriminates ingeniously against cars of the Buick type and in favor of cars of the Packard sort.

These two cars are in a vastly different Price class but in nearly the same weight class. Under the present French tariff, ad valorem ("according to value"), a high priced Packard pays a high tariff of $1,182 per car, and a medium priced Buick pays a medium tariff of $677.

Under the new tariff a hefty Packard will pay $1,230 (a comparatively trifling increase) but a Buick of nearly the same heft will pay $1,189 (an increase of 75%: a crushing discrimination against Buick or "medium priced" cars).

Of course the French Government is not discriminating against U. S. medium-priced cars because of any special hostility toward their makers but to protect French motor-makers who are concentrating more and more on this type.

Ford Victory. If the defeat of Buick in the new French tariff schedules is accidental and incidental, such is not the case in the victory of Ford over Chevrolet, a direct personal victory for Mr. Ford.

Months ago Mr. Ford's agents informed the French that if the tariff on parts was raised (the Ford Francaise is made in France of parts shipped from the U. S. and Ireland), Ford would set up a manufacturing plant in France so enormous that its output would completely glut the French low-priced market, drive out of business such French firms as Citroen.

The Ford threat was heeded. The new tariff bill will raise the duty on parts only 15% -but will raise the duty on Chevrolet cars (which are now imported assembled) from $300 to $437, an increase of 45% which should give the Ford salesman in France a tremendous advantage when competing with Chevrolet.

Booby Trap. So pleased were Frenchmen last week with their new high tariff scheme that they sought to get its benefits at once, quicker than the Chamber of Deputies could debate and pass the bill.

The Ministry of Commerce announced suddenly that the present ad valorem duty on imported cars would be collected not on the basis of the price in the foreign country of manufacture (as has been standard practice) but on the basis of the price in France.

Dismayed at this stratagem, to mulct U. S. motor makers, Ambassador Walter Evans Edge dashed round to see Minister of Commerce Pierre Etienne Flandin, to warn him against laying too many booby traps for Uncle Sam. M. Flandin, ever since his appointment (TIME, Nov. 11), has repeated militantly, on occasion after occasion: "If others build tariff walls, France will build tariff walls!" But last week it was understood that he backed down before Mr. Edge, promised informally that the booby trap will not be sprung, though no official announcement was made one way or the other.

This file is automatically generated by a robot program, so reader's discretion is required.