This week, President Donald Trump announced a 25% tariff on foreign-made cars and car parts.
He says the tariff will be applied to imported sedans, SUVs, crossovers, minivans, cargo vans and light trucks.
It also includes certain imported car parts like engines, transmissions, powertrain parts, and electrical components.
“This is the automobile industry,” President Trump said. “And this will continue to spur growth like you haven’t seen.”
Trump adds that the tariffs aim to ensure the U.S. can sustain its domestic industrial base and meet national security needs.
KSBY talked to a long-time used car dealer in San Luis Obispo, McCarthy’s, about how this could impact drivers here on the Central Coast.
“It’s going to raise prices on the cost to buy cars and the cost for us to repair them and get them ready for market,” said Chris Wesney, the general manager at McCarthy’s. “So, yeah, we expect that it’s going to push people to the used market and the price of everything is going to go up.”
If you aren’t in the market for a new car, you may see the impact when it comes to repairs on your car.
Jason Rodriguez recently bought a used Honda after his previous car broke down.
“I have the worst luck with cars, so I got a Honda in hopes that I won’t have any issues with it,” Rodriguez said. “I bought a newer one, not brand new, but a low mileage one, so hopefully I don’t have any issues with it, even my other car didn’t even have 100,000 miles on it, and the engine went out on it.”
He says the tariffs are a concern for him if he has to get it repaired.
“I am concerned about it,” said Chandra Gurnoe-Lutz, a Kia driver. “I am not necessarily in the market to buy a new car anytime soon, but if anything went wrong.”
Wesney says a concern they have is that this may make finding cars for them to sell more difficult too.
“I think we are going to see a lot of people hanging onto their cars and trying to make that car last,” said Wesney. “I’s going to affect our ability to buy cars, which ultimately drives prices up.”
