The United States President made the announcement this week that, as part of his goal to rebuild the industrial base in the United States, a tax of twenty-five percent will be added to all automobile imports beginning on April 3.
It is the reason that John Graff is purchasing an automobile right now rather than waiting for it to be delivered.
“My wife and I did have a discussion that, with the tariffs that are going on, we probably better get in here today and do something,” he told the television station CBS News Texas.
Graff mentioned that they have been considering purchasing a new Ford Explorer and are concerned about the potential impact that tariffs could have on the price tag.
“Basically, it’s just the unknown,” Graff remarked. “We just want to make sure there’s inventory, and who knows if there’s going to be a big rush before these tariffs go into effect.”
These taxes will have the greatest impact on brands that are manufactured in other countries. However, even American manufacturers such as Ford might be affected because two of their most popular and economical models, the Bronco Sport and the Maverick, are both entirely manufactured in Mexico. There is a possibility that this could have an effect on Ford.
Jerry Reynolds, an expert on automobiles, stated that the tariffs might have an impact on all automobiles, whether they are new or used, and could result in a price increase of thousands of dollars.
There is a possibility that it could be somewhere between $3,000 and $4,000 on average, according to my impression. Due to the fact that the automobile manufacturers are going to be required to bear a significant portion of the tariffs, they will not be able to pass that cost on to the customers, as stated by Reynolds.
The tariffs, according to Reynolds, could even make it more expensive to fix a car because the parts will be more expensive and in shorter supply. Additionally, the tariffs could potentially lead to an increase in insurance premiums.
There is likely to be a significant amount of hail damage in the Dallas-Fort Worth area during the next couple of months, and it is going to be difficult to acquire the necessary parts for that storm. Even the act of purchasing tires could become a challenge, according to Reynolds. “If anyone is going to be in the market for a car over the next 60 to 90 days, I would tell them to make that now and not wait.”
Trump’s 25% auto tariff to impact North Texas car prices and insurance.
