How auto tariffs could impact you

These potential tariff’s could hurt the pockets of customers at dealerships on all cars. Steve Gates, the owner of Toyota South in Richmond shared his thoughts on the potential tariffs and their impacts, locally.

“I’m not worried, I’m scared to death,” said Gates.

He says he hasn’t slept in weeks, over what could happen with business if Trump’s auto tariffs do happen.

While the tariff’s would be on imported vehicles, gates says foreign brands would not be the only ones to see it.

“There is not a brand that is not impacted,” said Gates.  “I mean there are a number of Fords, Chryslers, the General Motors cars that are built in Canada and Mexico.”

Andrew Whitaker, the Service Manager, says part prices would also see a rise in price.

“Therefore it’s going to end up costing the customer, they’re paying that $25 plus the extra percentage from markup,” said Whitaker. “In return that makes it more expensive for all of our customers to be able to afford proper repairs on their cars using proper parts.”

Gates says dealerships will try to keep prices the same for as long as they can, but it won’t last forever.

“Ultimately if this lasts for a long time they won’t be able to do that,” said Gates. “But as fewer people buy new cars, the used car values have to rise because people will still need to replace their cars.”

According to ABC, the average car price could rise by more than $12,000.

During a press conference, President Trump said this would boost domestic manufacturing.

“You’re going to see prices going down,” said Trump. “Business is coming back to the united states so that they don’t have to pay tariffs.”

However, Gates doesn’t see it that way. He says he wishes the Trump Administration could understand the local impact.

“Would understand how this effects us, how this effects small communities,” said Gates.

Trump says the tariffs on autos would start being collected on April 3rd.