By now, just about everyone is aware that the new administration of the United States government implemented a tariff on new vehicles built outside the U.S., starting April 2nd of this year. What seems to be causing some confusion is how it all plays out and what it does to the cost of vehicles today. To add to that confusion, some vehicles that are assembled here have parts made in other countries—and those parts are subject to the tariff, even though the vehicle was built in the U.S.
I believe the biggest misconception is that tariffs only apply to import car brands sold in the U.S., and not domestic car brands. While there are import car companies assembling vehicles right here on U.S. soil, there are also domestic car companies with assembly plants in Mexico, Canada, and other countries around the world. Many of those domestic cars may be sold here in the U.S. but were built in Mexico, Canada, or elsewhere.
Another misconception is that on April 2nd, all new vehicles subject to tariffs immediately went up in price. That is not the case. In fact, not a single vehicle on our lot has a tariff attached to it from that date. The best news—and I can only speak for General Motors and Volkswagen—is that neither of them has raised prices. So, even the vehicles being shipped to us now have no tariff costs passed along to consumers. Both General Motors and Volkswagen have chosen to absorb the tariff themselves.
We understand there is some confusion, and as a dealer body across the country, we are somewhat playing the waiting game as well. What we do know is that today, it’s business as usual. Prices have never been better, the deals are HOT, and NOW is the time to buy. Not a single vehicle on our lot has a tariff attached.
We hope to see you soon!
John Chauvin – General Manager
Don Hewlett Chevrolet, Buick Inc.
