BAKERSFIELD, Calif. (KERO) — U.S. tariffs on foreign steel and aluminum increased from 25% to 50%, affecting global trade and Kern County imports.
- Dealerships like Motor City are adjusting inventory and features to manage rising costs.
- Approximately 25% of a vehicle's composition is steel or aluminum, leading to higher prices.
- Consumers may not see the full impact of these tariffs on car prices for several months.
- Car buyers are advised to check vehicle labeling for manufacturing origins to understand potential tariff impacts.
BROADCAST TRANSCRIPT:
As Tariffs double on aluminum and steel manufacturers and those who sell will face the brunt.
John Pitre explains, "We're a local dealership serving people here in Kern County, and we're going to absorb those costs to make sure vehicles stay affordable."
With the executive order signed by Donald Trump, increasing steel and aluminum from 25% to 50%, this is the second hike in import taxes on metals, affecting many products including cars, homes, and canned goods.
Leaving concerns for Pitre, a chief operating officer for the Motor City automobile.
Pitre tells me, "There is upward pressure on new vehicles. Due to tariffs and trade agreements, we know new cars will become more expensive over time."
Approximately 25% of a vehicle is made up of steel or aluminum, and the increased tariffs are putting upward pressure on vehicle prices. To manage the rising costs, dealerships like Motor City are making strategic changes in inventory and features.
Pitre explains, "You might find some vehicles in stock without a sunroof. We used to only stock vehicles with sunroofs, but it saves us a thousand dollars. We're making adjustments—focusing on must-haves instead of nice-to-haves in our new inventory."
While the goal of the regulation is to encourage more U.S production of car parts, consumers may not feel the full impact of rising prices on foreign-made parts for several months.
John Pitre says, "We're a local dealership, and we're going to absorb whatever we have to in order to make sure affordability remains our priority."
Pitre advises car buyers to pay attention to vehicle labeling to better understand where a vehicle—and its parts—were manufactured.
Pitre admits, "Potentially, 37% of the parts are built in Canada and another 37% in Mexico. Those components could be subject to tariffs as well." As of now, the future remains uncertain when it comes to how the tariffs on aluminum and steel will impact car prices and repairs. It could take months before we fully see the effects.
Stay in Touch with Us Anytime, Anywhere:
