BUFFALO, NY (WKBW) — The U.S. automotive industry is expected to face significant challenges due to new tariffs, which could lead to increased costs for both car manufacturing and repairs.
These tariffs are anticipated to affect the cost of auto parts, many of which are imported from countries like Canada, Mexico, and China.
This could result in higher prices for consumers when it comes to vehicle repairs and purchasing new cars.
"I do understand the extra cost might be a burden on some people, but at the same time you know – you still got to keep that old gal running," said Bob Gugino, owner of Bison Automotive.
Gugino explained that many of the parts he uses in his auto repair shop — such as tires, filters, suspension parts, and steering parts — are imported.
"Just about anything you can think of," he said, highlighting the reliance on foreign-made components.
Gugino noted that a significant portion of these parts come from Canada, mentioning that Goodyear tires and brake rotors are among the items sourced from there.
"There's quite a bit that comes from Canada," he added
“Are you worried, as a business owner, how this will be affecting your bottom line?” I asked.
“I don't know if I would say worried, but I would say it is of course going to increase costs,” replied Gugino. “At some point, I think it will come around – because with these tariffs – we hope that some of those parts that are made in China and Canada and Mexico will start to be made here in the United States. And that will, of course, bring prices down and put more people to work, so hopefully there's a reverse effect of the tariffs."
“With any tariff, we know there's a fine line,” said Raymond Jensen, assistant director of the United Auto Workers (UAW) Region 9.
President Trump said the tariffs are designed to bring manufacturing back to the U.S., and that's what the auto workers union hopes will happen.
"But we support tariffs that bring back manufacturing jobs to the U.S. and make sure that our members have a place to work and a job to be at,” said Jensen.
According to the experts, these tariffs could hike the price of your next vehicle by thousands of dollars.
“The companies need to find a way to deal with the tariffs and just make sure our members are not laid off and they're not price gouging the average consumer,” Jensen noted.
