How will Trump's tariffs impact the Philadelphia region?

CBS News

04-03-2025

President Trump's tariffs on Canadian and Mexican imports could soon make cars significantly more expensive, with economic experts warning that prices may rise by thousands of dollars.
At Barbera Autoland in Northeast Philadelphia, owner Gary Barbera says he has been preparing for the tariffs by stocking up on inventory. For now, he remains optimistic.
"We're just so lucky – and it is luck," Barbera said.
Barbera Autoland sells only Chrysler, Jeep, Dodge, and Ram vehicles — brands that are largely assembled in the United States.
"We're under 10% of vehicles that even play in Mexico and Canada," Barbera said.
With Mr. Trump's new tariffs on imports from those countries, Barbera believes his dealership will fare well.
"One would say it's going to give us a competitive advantage," he said.
But even American-made cars could see price hikes, as many of their parts are manufactured abroad, according to Erasmus Kersting, chair of Villanova University's Department of Economics. He says no one will be spared by the tariffs.
"They are just going to raise prices," Kersting said. "There is a lot of cross-border traffic involved with the production of every single automobile."
While estimates on price increases vary, Kersting said the potential impact is substantial.
"Figures I have seen range from $2,000 to possibly over $10,000," he said.
For dealerships, existing inventory will be key. That's why Barbera moved quickly.
"We ordered lots of cars when this thing came down the road in starting November. So we are really lucky. We have three storage lots that are full to the brim," he said.
Barbera said he specifically stocked up on 150 Jeep Grand Cherokees, predicting that comparable models from other major car manufacturers will be hit harder by the tariffs.
As for when customers might see price increases, Kersting estimates it could be just a few months or whenever dealers run out of inventory.
"It's going to be major"
For more than 100 years, P&F Giordano Fruit and Produce has been selling fresh fruits and vegetables on 9th Street in South Philly, and shipments come in every single day.
"In the produce business you try to keep it fresh, so you try to buy it on a daily basis," said John Giordano, who is the owner of the market.
Giordano said he is bracing for impact, and he's expecting prices to rise now that the U.S. has imposed 25% tariffs on nearly all goods imported from Mexico and Canada and increased tariffs by 10% on imports from China, which now total 20%.
"A lot of things come from Mexico; a lot of our produce comes from Mexico. Avocados come all year round from Mexico," he said.
Avocados, asparagus, limes, blueberries and tropical fruits are just some of the items from Mexico that experts said could soon be more expensive for consumers.
"Yeah, it's going to be major," said Yolanda Franklin, who was shopping Tuesday.
To save money, Franklin said she's already changed where she buys groceries, and if prices go even higher, she will change how she shops.
"I won't buy as many as I had, so I'm learning to eat less," Franklin said. "Eat less and drink more water."
"This represents one of the largest trade restrictions in modern U.S. history," Dr. Joshua Mask, an assistant professor in the department of economics at Temple University, said.
Mask says 42% of all U.S. imports come from Mexico, Canada and China, and he expects consumers will start paying more fairly soon.
"If these stay in place, I would expect the full blunt of these increases to hit within the next couple of months for everything for the whole $1.3 trillion in imports that we rely on," Mask said.