ORCHARD PARK, NY (WKBW) — The auto industry is now dealing with the Trump Administration's steep new tariffs on auto imports.
Vehicles shipped into the U.S. are subject to 25 percent tariffs before they hit the dealership, and now our northern neighbor is reciprocating with Canada's prime minister announcing Thursday the country will impose its own 25 percent tariff on cars brought in from America.
Experts predict this trade war could add thousands of dollars onto the cost of a new car.
“It can't keep going in the direction it's going," said Sam Allesi. "It's got to turn around.”
Allesi is a regular customer at Towne Mazda in Orchard Park. He told me he's lucky because he bought his car last year, however, he's very concerned for other consumers.
“I feel terrible for young families," Allesi said. "I don't know how they can do it.”
Many Mazdas are made in Japan, and some are made in Mexico
“What makes you want a car that's imported from somewhere else?” I asked.
"I just liked the features," Allesi responded. "I looked at quite a few different cars, and I ended up coming to Mazda. I liked mostly the safety features on the car.”
“As of today, our prices are protected, so anybody who comes in now, the prices of the vehicles will be protected,” sales consultant Joe Gangarossa explained.
Dealerships are still trying to figure how this will all shake out and what it will mean for you when you buy a new car.
“Is it really tough to target that number right now?” I asked.
“It is because there's a lot of variables that go into that,” responded Gangarossa.
Gangarossa told me the dealership is getting texts and phone calls from potential buyers who are worried about the future costs of vehicles.
"I actually just got a phone call a few minutes ago from a long-term customer, very upset and very concerned about the future of his next vehicle he's going to purchase,” Gangarossa said.
Gangarossa believes the tariffs could be “harmful” to the business, while Raymond Jensen, assistant director, UAW Region 9, said they support the tariffs.
"We've had broken trade laws for decades — NAFTA, USMCA — we've seen thousands and thousands of jobs leave this country," Jensen said. "We have to start somewhere and try to bring this manufacturing back to this country."
Jensen told me his union is in favor of the mission of the tariffs to bring more manufacturing back to the U.S.
"Between the big three, there's thousands of our members laid off due to these factories, due to these corporations shipping jobs to Mexico," he said. "There's factories that are underutilized.There's factories that could add shifts. There's factories that could put new products in there and bring these jobs back to this country where they were originally.”
The union leader told me he believes there is too much “fear mongering” about the price of vehicles and believes automakers could “absorb the cost.”
