Auto tariffs have dealerships, repair shops paralyzed with uncertainty. Here’s how drivers can stay in control
From Yahoo Finance: 2025-04-13 07:30:00
President Trump’s 25% tariffs on imported cars have caused uncertainty among auto makers, mechanics, and consumers. The tariffs are set to expand in May to include imported car parts, raising concerns about higher prices and the impact on the industry.
The automaker Stellantis has already halted production at plants in Mexico and Canada due to the import tax on cars. Layoffs and production pauses are deemed necessary by COO Antonio Filosa, despite critics questioning the impact of tariffs on the American economy.
Industry experts warn that tariffs will not immediately bring manufacturing jobs back to the U.S. S&P Global Mobility analyst Stephanie Brinley states that retaliatory actions will further complicate the situation, as the North American auto industry relies on an integrated supply chain.
Flavio Volpe, CEO of the Automotive Parts Manufacturers’ Association, emphasizes the importance of cross-border cooperation in the industry. The complexity of labeling finished cars and auto parts as imports vs. domestic products poses challenges for the sector amid escalating tariffs.
American auto analyst Mel Yu highlights that even domestic cars heavily rely on imported parts, with prices expected to rise. As drivers rush to dealerships, exploring discounts and rebates may help offset the increased costs of buying a new car amid the tariffs.
Consumer Reports advises consumers to maintain their existing cars to prevent large repair bills. Keeping up with maintenance can increase the value of your car in the face of rising prices due to tariffs. Setting aside funds for emergency car repairs is also recommended to avoid debt.