SAVANNAH, Ga. (WSAV) — A 25% tariff on imported cars went into effect Thursday, and the same tariff on imported car parts is set to begin within a month.
President Trump's tariffs mean that an imported car that used to cost $40,000 will now cost $50,000, and consumers will absorb that price hi
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"With tariffs, especially 25%, prices will go up in six months," Executive General Manager at the J.C. Lewis Group, Stephen Staton, said.
Though Staton said he doesn't believe the price difference will be noticeable for several months, he said even American car companies, like Ford, will eventually feel the impact of the tariffs because they still use imported parts.
"This is not something that's going to happen for Ford overnight," he said. "This is something that's going to happen over the next three, four, five months as the ground stock and pipeline sells out and the new parts come in, and the new assembly units come in and are affected by it."
The Trump Administration's tariff on car parts will go into effect no later than May 3, according to the White House.
"You do have little parts that are going to be purchased outside the United States and brought in, but, for the most part, it's going to support more jobs in the United States," Jeremy Harlas, a local consumer, said.
Others, though, are not willing to make the tradeoff.
"There's no such thing as an American car anymore," Joe Palazzolo, also a consumer, said. "So, I don't really understand why they're going to punish the companies and the people that work there. It just seems like a big scam to me."
With new car prices on the rise, several consumers told WSAV they'll stick with a used car for now.
However, with demand for used cars going up, those prices are getting higher as well.
"We're already starting to see book values, especially when we start pulling them forward looking, they're already starting to go up," Staton said. ...read more read less