Whippany, New Jersey – Tom Maoli, owner of a new and used car dealership in New Jersey, says drivers could see a big jump in prices If President Trump follows through at his peril To impose 25% tariff Mexico And Canada,
“Every car that comes out of any dealership is going to drive up prices,” Maoli said. “Parts come from all over the world.”
The average price of a new passenger vehicle in the US in December was $49,740, according to Kelly Blue Block.
Maoli speculated that if Tariff When implemented, prices for new cars could jump anywhere from 5% to “up to 15%.”
with high prices for new carsDue to increased demand, prices of used vehicles will also increase.
Some of the largest car brands, including Ford, General Motors and Stellantis, have plants in Mexico and Canada.
And according to Maoli, more than half of the parts — such as batteries and motor components — for cars assembled in production plants in the U.S. are sourced elsewhere and could be hit with tariffs as well, especially with the president also pushing for new tariffs. also proposed China,
“I think the manufacturer has no choice but to pass it along to the consumer, because they need to drive profits,” Maoli said.
How soon might consumers see price increases?
“Anything that hasn't been shipped yet — or is on the dock that's being shipped into these ports — is going to eventually go into a vehicle that's going to be manufactured,” Maoli said. “It's immediate.”
But that's not all. Repair costs may also increase. Everything from air filters to washer fluid is imported from abroad.
“These brake pads come from China,” Maoli said. “Some of them come from Mexico. These brake pads can inflate by as much as 20%, which ultimately impacts the cost to the consumer when they do that.”
This means that even if drivers choose to hold on to their current vehicle rather than purchasing a new one, they could still potentially be affected.
“Because if you're not buying, you're doing OK,” Maoli said. “You've got to keep the car on the road. You can't stop transportation. You've got to get your family to work and school.”
Tariffs may encourage manufacturers to bring jobs to the US, but it's not something car companies can do overnight. Maoli said those plants could take 18 to 24 months to grow. Most in the auto industry, however, are hoping these threats are just a negotiating tactic.
