Auto tariffs to start; could impact local dealerships
Trump's 'Liberation Day' of tariffs is coming. What it could mean for you
Trump is expected to roll out some tariffs he claims will free the United States from its reliance on foreign goods. This includes goods on foreign vehicles, which will go into effect this week.
The Trump Administration plans to implement a 25% tariff on imported vehicles and auto parts. If you're looking to buy your car, one dealership said it's better to act now.
'I think that the Trump Administration is going through negotiations with these other countries and manufacturers, I think that, I mean, it's again, as I stated before, if you are in the market for a car, you probably want to act sooner than later because we don't know,' said Automobile Dealer, Dan Banister.
Banister said this is to get manufacturing jobs back in the United States. It will also level the playing field for buying and selling cars, according to the administration. Banister said it's uncertain now, but there could be a negative impact on the auto industry.
'If it does stick, it could have a detrimental effect on the consumer and the businesses and all the workers. But right now, we don't know. I mean, all the- I have five different brands, and we really don't know how it's going to impact me because they could put a tariff on it and it may not be passed on the consumer,' said Banister.
For car parts, industry analysts are expecting costs to jump as early as the next coming weeks or even months. If the part is coming from another country, the price will be directly affected by the tariff.
'I think that's probably going to be a bigger impact than it is the auto sales, because you know what? The average customer keeps their car for five or six years. You know, we're talking about the auto parts said, you know, people have to get regular, regular maintenance on it. And unfortunately, a lot of the parts that people need to maintain their vehicle are made overseas,' said Banister.
Experts say that in February, six in every 10 auto replacement parts came from Mexico, Canada or China.
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