Earlier this spring, President Trump set new tariffs into motion that have sent reverberations across the global economy. The impact on the automotive and vehicle finance industries will be significant. U.S. trade groups fear the tariffs — 25 percent on steel and 10 percent on aluminum — will adversely affect an auto sales market that was already experiencing plateaued sales.
“These proposed tariffs on steel and aluminum imports couldn’t come at a worse time,” said Cody Lusk, president and CEO of the American International Automobile Dealers Association (AIADA). “Auto sales have flattened in recent months, and manufacturers are not prepared to absorb a sharp increase in the cost to build cars and trucks in America.”
While pundits foresee increased new car prices and job losses at dealerships and manufacturers, might there be opportunity in a used car market that isn’t at the immediate mercy of new manufacturing costs?
As trade tensions continue to rise in the automotive market, we will continue to monitor the situation closely and keep you informed.
- “Tariffs may end Chinese car imports before they really start,” Automotive News
- “‘Peak SUV,’ self-driving cars and Trump’s tariffs: Auto insiders sound off on the biggest challenges they face,” ABC News
- “How Trump’s Proposed Tariff On Steel and Aluminum Could Impact the Automotive Industry,” CBT News
- “Toyota Says Trump’s Tariffs to ‘Adversely Impact’ Automakers,” Bloomberg
- “Auto Dealers Object to White House’s Steel and Aluminum Tariffs,” AIADA