EDITOR’S NOTE: The Trump administration announced it will impose a 25% tariff on auto imports. As our Amelia Mugavero reports, it will affect your next car purchase here in North Texas and even your insurance rates.
Getty Images
President Trump announced this week that a 25% tax will be tacked on to all auto imports starting April 3, as part of his plan to rebuild America’s manufacturing base.
For John Graff, it’s the reason he’s buying a car today instead of waiting.
“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 CBS News Texas.
Graff said they have been planning to buy a new Ford Explorer and worry about how the tariffs could impact the price tag.
“Basically, just the unknown,” Graff said. “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.”
Foreign-made brands will be impacted by these tariffs the most. But even American brands like Ford could be impacted as well because two of their most popular and affordable models, the Bronco Sport and the Maverick, are both completely made in Mexico.
Auto expert Jerry Reynolds said the tariffs could affect all cars, both new and used, and raise the cost by thousands.
“It looks to me like it could be somewhere between $3,000 to $4,000 on average. Because the automakers are going to have to absorb a lot of the tariffs, they’re not going to be able to pass that on to consumers,” said Reynolds.
Reynolds said the tariffs could even make car repairs more costly because the parts will be pricier and in short supply, and they could also possibly raise insurance rates.
“There’s going to be a ton of hail damage in Dallas-Fort Worth in the next couple of months, and getting parts for that’s going to be a problem. Just buying tires could become a problem,” Reynolds said. “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.”
