Sat, 29 Mar 2025

Sat, 29 Mar 2025 'It's going to get worse': American car buyers brace for sweeping auto tariffs

"The prices in the wholesale market have skyrocketed already and it's going to get worse," one car seller told the BBC.

* The new tariffs on foreign cars and car parts, set to take effect next week, are causing concern among consumers.
* Jeannie Dillard, who saved for two years to replace her stolen vehicle, is now hesitant to buy a new car due to rising prices.
* Mohamad Husseini, co-owner of a used car dealership in Maryland, expects the additional tariff costs to be passed down to consumers, with prices increasing by $1,500 on a $13,000 car.
* Automakers have warned that tariffs could raise prices for US consumers and amplify economic stress.
* John Heitmann, a University of Dayton professor and automobile historian, says tariffs will have an existential impact on car ownership, particularly among Americans who rely on cars as their primary mode of transportation.
* Higher-end imported vehicles such as Audis, BMWs, and Mercedes may also see price increases.
* A 2024 study by the US International Trade Commission predicted that a 25% tariff on imports would reduce imports by almost 75%, while increasing average prices in the US by about 5%.
* The tariffs are likely to impact domestic cars as well, with US auto manufacturing deeply intertwined with industries in Canada and Mexico.
* Some car makers, including Hyundai, have announced investments in the US despite the tariffs, but experts warn that this may not be enough to offset the economic impact.
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