President Trump’s plan for broad tariffs is set to take effect on Wednesday. The president believes the tax on imports will jumpstart a new era for the U.S. economy, but, initially, it could come at a cost to consumers. NBC 5’s Maria Guerrero has more on the impact on auto sales and repairs.
Broad tariffs proposed by the Trump administration could mark what the president calls “Liberation Day”—a turning point aimed at revitalizing the U.S. economy through new taxes on imports.
Those in the auto industry, however, predict a temporary disruption in supply and rising costs for consumers.
Watch NBC 5 free wherever you are
WATCH HEREIt’s not just storm season that body shops like CARSTAR SheerMetal in Plano are bracing for, but also the ripple effect of new tariffs on imported auto parts.
Parts experts in the auto industry say those parts are largely sourced from dozens of countries, including South Korea, Japan and Canada.
Get top local stories in DFW delivered to you every morning with NBC DFW's News Headlines newsletter.
SIGN UP “We don’t know for sure what’s going to happen, but we can assume the prices are going to be increased from our suppliers down to us and we’ll have to pass it on to customers,” said shop owner Brad Adams. “I think most people are understanding that it’s out of our control. It’s just the environment we’re in right now.”
Whether customers pay out of pocket or go through their insurance, auto repairs are expected to increase, according to Jerry Reynolds, the host of the nationally syndicated Car Pro Show.
Reynolds, like many in the auto industry, is anxiously awaiting the Trump administration’s 25% tariffs on foreign-made cars, light trucks and auto parts, which are set to take effect Wednesday.
Local
The latest news from around North Texas.
“I’m just hopeful that deals are struck before midnight tonight and we can avoid all this,” he said.
By "this," Reynolds means a predicted disruption with far-reaching implications.
“Just doing a tune-up, or buying a set of tires, or guess what? A windshield,” he said. “It’s going to hit. I don’t even think we’ve all thought about all the different ways this is going to affect pocketbooks. It’s going to be tough.”
Reynolds will track the impact on new car sales, which, up until now, have been spurred by rebates of up to $7,000, levels not seen since before the pandemic.
“It was a great first quarter. I mean, the best we’ve had in many, many years.
So, you know, I’d hate for something to stop that momentum because it’s good for the economy,” said Reynolds. “If the tariffs come, those incentives are going to drop.”
Dealerships, both small and large, will likely look for ways to cut expenses, and incentives tend to be the first to go, he said.
Reynolds’ advice for those considering buying new or used by the end of summer: Buy now.
“We won’t see much higher prices until after all the inventory that’s sitting on dealerships today is depleted,” he predicts. “There will be a run on new cars if the tariffs come.”
Adams happened to do just that.
“I actually bought a car for my wife this weekend because of anticipating tariffs going into effect and raise car prices,” he said.
