WILKES-BARRE, LUZERNE COUNTY (WBRE/WYOU) — New tariffs on Wednesday from President Trump could mean a big shift in the auto industry. 28/22 News met with the owner of a local car dealership to find out how these changes will affect prices locally.
In President Trump's Liberation Day address, he named a number of tariffs being put in place this month.
The first to go into effect: A 25% tariff on all foreign-made vehicles entering the US.
President Trump says these tariffs are meant to counter trade practices that threaten national security, but some business owners worry, they may also threaten business here at home.
"I'm not sure how it's gonna go. Hopefully it doesn't affect that much, but everybody's I think waiting to see what's gonna happen," said Mohamed Elkeshen, Owner of AME Motorz Auto Sales.
Elkeshen opened shop five years ago along Kidder Street in Wilkes-Barre. He says they've dealt with changes in the market before, primarily during COVID when chip shortages from China were at an all-time high.
While the 25% tariff may not have as much of an effect on the pre-owned market, he says the cost of key auto parts will.
"Going to a shop, a mechanic's shop, trying to fix something small, it could become double the price just between buying parts. So that might take a big effect on everybody," Elkheshen explained.
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President Trump says until now, the US charged other countries a 2.5% tariff on exported vehicles. He defends his decision, citing the tariffs these countries impose on US manufacturers.
"The European Union charges us more than 10% tariffs, and they have 20% VATs, much, much higher. India charges 70%, and perhaps worst of all are the non-monetary restrictions imposed by South Korea, Japan, and very many other nations as a result of these colossal trade barriers," President Trump stated.
For pre-owned dealerships like AME, the tariffs may mean more business, as people steer clear of buying new, but with higher demand, usually comes higher prices.
Elkeshen says while there is still a lot of uncertainty, he doesn't think people are going to stop buying cars.
"Consumers might keep their cars for longer, not like they used to, but I feel like the market, I think car-wise, is never going to stop," Elkeshen continued.
Now, while these tariffs are set to take effect at midnight, it is unclear how long it will take for consumers to notice the effects here in the US.
