Tom Maoli, owner of a New Jersey car dealership, warns that drivers could face significant price increases if President Trump follows through on his 25% tariff threat against Mexico and Canada. He explains that tariffs on imported parts, many of which originate from these countries, will inevitably be passed on to consumers, leading to a 5% to 15% jump in new car prices. Used car prices would also rise due to increased demand. Maoli highlights that even routine car repairs would become more expensive, as parts like brake pads and washer fluid are also imported. While some hope tariffs might incentivize car manufacturing to return to the U.S., this process could take 18-24 months, leaving consumers vulnerable to immediate price hikes.
Whippany, New Jersey — Tom Maoli, the 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 on his threat to impose 25% tariffs on Mexico and Canada . 'Every car that comes out of any dealership is going to raise the prices,' Maoli said. 'Parts come from all over the world.' The average price of a new passenger vehicle in the U.S. in December was $49,740, according to Kelly Blue Blook.
'I think the manufacturer has no choice but to pass that along to the consumer, because they need to drive profits,' Maoli said. How quickly could consumers see prices increase?'Anything that has not been shipped yet — or is at the dock that's getting shipped into these ports — that's ultimately going into a vehicle to be manufactured,' Maoli said. 'It's immediate.'But that's not all. Repair costs could go up too.
TARIFFS AUTOMOTIVE INDUSTRY PRICES CONSUMERS MEXICO CANADA
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