NASHVILLE, Tenn. (WTVF) — Businesses, including auto repair shops, are bracing for higher costs due to new tariffs, warning that consumers will ultimately pay the price.
Experts are warning people to budget for higher prices on imported goods from three key U.S. trade partners. According to a report from Anderson Economic Group, the 25% tariffs on goods from Canada and Mexico, as well as an additional 10% tariff on imports from China, could drive up car costs of more than $12,000 for some models.
Julio Rivas — Lipscomb University Finance and Economics professor — said with interest rates still high, this will hurt wallets.
These countries are already planning to impose reciprocal tariffs. Rivas said the uncertainty means people should budget for potential emergencies. If a car breaks down, replacement parts won’t come cheap, and buying a new vehicle will be even more expensive.
“This is something that the government is implementing, and hopefully, at some point, the economy will be able to heal itself, and we as consumers will go back and have the products we want at lower prices, and it will be easier for us,” Rivas said.
Precision Tune Auto Care General Manager Chris Fowle prides himself on finding the best deals for customers.
“You want them to get the most bang for the buck,” Fowle said.
But tariffs make that more difficult.
“I’d say about 25% of the parts we get nowadays are from those three locations,” Fowle said.
Fowle says the impact may not be immediate, but it will happen. Rivas said as imported goods increase in price domestic goods will follow.
“If both of them are the same car, different manufacturers but the same type of car, more people will buy this less expensive car. But as more and more people buy this car, the car will go up and at some point, go up to $50,000,” Rivas said.
Fowle believes proper car maintenance is the best way to save money in the long run.
“Rotate your tires, frequent oil changes — when you have the problem, go ahead and address the problem right then and there before the big problem turns into a big escalating problem,” Fowle said.
Even with uncertainty ahead, he is committed to helping customers save.
“We’re always going to do that,” Fowle said.
Do you have more information about this story? You can email me at aaron.cantrell@newschannel5.com
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