Impact of auto tariffs
EL PASO, Texas (KVIA) - Buying a new car and getting your car fixed could get a bit pricier due to President Trump's auto tariffs. On Wednesday, Trump said he is imposing 25% tariffs on car parts coming into the US, in addition to fully assembled vehicles. The tariffs on the vehicles are set to take effect on April 3, the tariffs on part may go into effect no later than May 3, according to the White House.
The General Manager of the Bravo Cadillac dealership told ABC-7 that right now he's not too worried that business will suffer in the near future. He says the price rise for a car will all depend on where it's made.
"Buy something that's made in the United States, because parts are easier to get. Your services are less expensive than a vehicle that's brought abroad, so make sure that you do your research," says Eddie Zermano.
According to the National Highway Traffic Safety Administration, all of the major makes and models sold in the U.S. have final assembly points in other countries. Which is why Economics Professor at UTEP Tom Fullerton says if you are in the market to buy a new car you should do it sooner rather than later.
"Even, if you know, only 40% of that tariff increase is passed on to customers, that translates into $3,000. And for the more expensive automobiles, it doesn't take long before you're up to the $10,000, " Fullerton told ABC-7.
Peter Navarro, the White House Senior Counselor for trade and manufacturing says it's about bringing business back to America.
"So if you look at this, everybody's going to be better off in America through this policy," said Navarro.
Fullerton also says if Canada and Mexico are included in the tariffs which he says is likely then the economy here in the borderland will suffer.
"It could lead to reduce payrolls at the automobile and the automobile equipment manufacturing factories in Juarez. And eventually that will translate into fewer jobs in retail, transportation and warehousing here on the north side of the river," says Fullerton.
