Trump's auto tariffs: potential impact on new & used car prices
FRESNO, Calif. (KFSN) -- The auto industry is just one of several bracing for the start of new tariffs on April 2nd."On Wednesday, it will be Liberation Day in America as President Trump has so proudly dubbed it," White House Press Secretary Karoline Leavitt said.The President says tariffs will improve the U.S. economy and create more American jobs by reducing how much our country relies on foreign goods.But UC Merced associate economics professor Greg Wright says it may not pay off.He specifically addressed the 25 percent tariff on imported cars, light trucks and auto parts."If the price rises by $2,000 or $3,000, I mean for literally everyone in the US. I mean, that's a massive expense. And so you know, the number of jobs that are going to be created are probably going to be dwarfed by these costs," Wright said.That could also drive demand for older model vehicles.In the coming weeks to months, consumers may get sticker shock even on used cars as experts say those prices could also to increase.We reached out to several used car dealerships in our area. Many told us they're monitoring the situation, but it's too early to know exactly how they'll be impacted.RELATED: Climbing car costs: auto tariffs set to begin later this week will increase vehicle valuesAuto City in Northwest Fresno says - its niche used car dealership will likely follow the market."If the prices do increase making us pay more for the cars, we're going to increase a little bit," Auto City manager Khalil Nassar said.However, Auto City is hopeful it won't have to pass major costs onto customers."I am going to hold off as long as I can. I don't want to increase my prices if I don't need to," Nassar explained.Experts say it usually takes a few weeks for customs agents to begin collecting tariff revenues, but the White House says they will go into effect immediately following Wednesday's announcement.For news and weather updates, follow Tiffany Olin on Facebook, Twitter and Instagram.Copyright © 2025 KFSN-TV. All Rights Reserved.
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