Trump’s incoming auto tariffs raise concerns among US car owners
How Trump’s auto tariff could impact car prices
With President Trump’s proposed 25% tariffs on imported automobiles and car parts, both U.S. consumers and small business owners are bracing for impact. From new car leases to foreign part repairs, these tariffs could drive up costs by as much as $15,000, according to industry experts.
President Donald Trump is expected to announce a 25% tariff on auto imports beginning Thursday, with taxes on fully-imported cars kicking off at midnight.
The new levy is making some residents nervous, such as Mitch Dank who has six months left on the lease of his Volvo.
Car owners are nervous
With the new tariffs Trump is imposing, Dank signed a new contract early because he didn’t want to take a chance.
What they're saying:
"We were feeling nervous, feeling like the prices might go up a lot, and we thought if we could lock in the price now, it would really save us in the long run," Dank told FOX 5 New York.
Car maintenance could be impacted
Freeze frame taken from WNYW PKG on APril 1, 2025. (WNYW)
Why you should care:
For those who aren’t in the market to buy or lease a new car, you may still be affected because most car parts used in repairs and maintenance come from overseas.
Car shops, such as The Little Garage in Huntington, are expecting to see a boost in business.
What they're saying:
"They’ll want to hold onto their existing car and the expenses will get higher as the cars age," Matthew Meng, owner of The Little Garage, told FOX 5.
By the numbers:
It’s estimated that about 40% of car parts are sourced from outside the U.S., according to auto industry experts.
Some car price averages could increase to $5,000 and $15,000.
What they're saying:
"In the long haul, you might see increases in foreign car prices and American cars will be more competitively priced and hopefully will drive consumers to buy American," Dr. Marty Cantor, an economist, told FOX 5.
Used car sales could go up
Local car sellers expect that if the price of new cars becomes less affordable, more people may buy used.
What they're saying:
"We’re hoping we’ll see more volume in customers, a lot of people switching from new cars to used cars," Nick Curcio, from Northport Motors, said.
The Source: This article uses information from reporting by FOX 5 NY’s Jodi Goldberg.