Ziggy Duchnowski, a union carpenter who voted for President Trump, spent his Saturday morning car shopping in Queens with the goal of finding a new small car for his wife and hoping to secure a deal before the new tariffs on imported cars and trucks come into effect on April 3. The 25 percent tariffs on vehicles and parts produced outside the United States are expected to increase the prices of new cars and trucks, leading consumers like Mr. Duchnowski to purchase vehicles before prices jump. Analysts estimate that these tariffs will raise the prices of new vehicles by a few thousand dollars for entry-level models to over $10,000 for high-end cars and trucks. This increase is likely to impact both new and used car prices.
The impact of the tariffs will be felt across the North American auto industry, affecting automakers such as General Motors, Toyota, Honda, and Volkswagen, all of whom have operations in Canada and Mexico. Car dealership sales managers are already concerned about the potential impact of the tariffs on pricing and sales volume. Consumers like Alvaro Duarte, an Ecuadorean immigrant, are also feeling the effects as he decided to trade in his gas-powered car for an electric model at Hudson Toyota in Jersey City to avoid potential price increases. Dealerships are preparing for changes in consumer behavior, with some customers already expressing the urgency to purchase before prices rise.
In Ann Arbor, Michigan, protests were taking place at a Tesla showroom with demonstrators calling for the firing of Elon Musk over his cost-cutting initiatives that have led to job losses at various federal agencies. However, protests did not seem to deter customers from entering the showroom. Similar Tesla Takedown movements were scheduled worldwide, indicating concerns over the current political climate. In response to potential tariff-related price increases, Juan Carlos Fagerlund decided to speed up his car shopping at a Toyota dealership in North Miami, opting for a Prius as the car is made in Japan and will be subject to heavy tariffs. Adria Pina, a Dominican immigrant and New Jersey Transit bus driver, also felt relieved to have bought a new car before what she anticipated to be a significant price hike.
Across dealerships both in urban areas like Manhattan and suburban locations like Hudson Toyota in Jersey City, customers and sales managers are anticipating the impact of the tariffs on prices and sales volume. While some customers like Sal Sellers at Hudson Nissan next to Hudson Toyota are concerned and already making purchases in anticipation of price hikes, others like Enzo Costa outside Chicago are increasing their inventory to offset potential future increases. Silver Line Auto Group in Queens, which caters to immigrant and non-Social Security number-holding customers, has seen a decline in sales not due to tariffs but because customers are choosing to save money amidst uncertain times.Contradictions in customer behavior and dealership outlook are indicators of the broader economic impact of the impending tariffs on the auto industry.
