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Metro Detroiters are preparing for impact tariffs could have on car sales

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FERNDALE, Mich. (WXYZ) — Whether or not to buy a new car is top of mind for many people after President Trump announced that he is implementing a 25% tariff on imported cars and auto parts.

PREVIOUS REPORT: Trump announces 25% tariffs on foreign-made autos in bid to increase vehicle manufacturing in the US

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“I had to hustle and get a car before the Trump tariffs come into being,” said Karen Pettke of Royal Oak.

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KAren Pettke

I caught up with Pettke as she was leaving Hodges Subaru in Ferndale. She says she planned on buying a car in June but once Trump announced the tariffs, she decided to buy the car on Wednesday.

“I didn’t want to take a chance that this car could go up thousands of dollars," said Pettke.

David Mendiola, the used car manager at Hodges Subaru, says he’s seen a lot of customers coming in asking about the tariffs.

“There’s a little more concern if this is going to affect my car, am I going to pay a lot more? Will I be able to get it on time?” said Mendiola.

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David Mendiola

Mendiola says he’s concerned about how the tariffs will impact his used car inventory.

“For me, I’m trying to get as much inventory as possible, but if it does start hitting new cars, it may get a little difficult getting used cars with trade-ins,” Mendiola added.

FULL INTERVIEW: David Mendiola with Hodges Subaru on tariffs and used car sales

FULL INTERVIEW: David Mendiola with Hodges Subaru on tariffs and used car sales

The tariffs on imported vehicles and car parts, including engines, powertrain parts, and electrical components, will go into effect on April 2nd.

I also spoke to automotive expert Sam Abuelsamid, who says that if you’re looking to buy a car, you should do it sooner rather than later.

“Cars are probably going to get on average about $6-$8,000 more expensive,” said Abuelsamid.

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Sam Abuelsamid

Abuelsamid added that even used cars are expected to go up in price.

“Because it’s increasing the price on new vehicles, a lot of shoppers will probably switch over to looking at used cars. That increased demand for used cars is going to drive up those prices,” said Abuelsamid.

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With 25% auto tariffs coming, repair shops and customers concerned over costs

Back at Hodges Subaru, David Mendiola says his goal is to make sure customers still get a fair price on a car even with the tariffs.

“You want to make sure you’re giving them a good car, you're trying to make some profit, but you’re not trying to break the bank on every car,” said Mendiola. “That’s a recipe for disaster.”

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