AUSTIN, Texas — Local car dealerships in Central Texas are bracing for impact as new tariffs on imported vehicles went into effect, with auto parts next in line.
On Wednesday, the Trump administration announced a 25% tariff on all foreign vehicles and auto parts, a move economists warn could increase new car prices by more than $6,000. Some used car dealerships anticipate significant changes in costs and inventory availability.
Nicolette Perez, Operations Manager at West Auto Sales, told KVUE she is concerned about the growing financial strain on the industry.
Perez, whose family has run the dealership for 27 years, said that even before the new tariffs, finding affordable, high-quality used vehicles was becoming increasingly difficult.
“We thought it was bad during COVID,” Perez said. “Now, we’ll see what this brings us.”
Before they sell their cars, Perez said they pay for repairs. Now, they worry how much that will increase and if there will be enough inventory.
“Right now, I mean, and just basic repairs, water pumps or, you know, gaskets, seals and gaskets, I mean, they’ve gone up and in parts alone and labor as well,” Perez said. “I mean, the cost to keep the business running, it’s high for us and in this industry.”
Perez said the uncertainty in the industry has her feeling uneasy. While it is too soon to gauge the full impact, she said she will be keeping a close eye fluctuating prices.
“We’ve talked about it a lot now,” Perez explained. “We just have to be smart on how we purchase our vehicles that we want to resell and what it’s going to take to get them ready for, you know, the customer.”