The Trump Administration’s tariffs on imported vehicles and parts have some Kentucky auto dealers concerned about higher prices. Jason Wilson, the president of the Kentucky Automobile Dealers Association, said tariffs were a big topic during a Tuesday lunch with several members. He said it’s important to note the situation is fluid and the taxes on foreign goods may not last.
“If it's longer term, that is concerning for a number of reasons. One is, you have the escalating costs of vehicles. The average price of a new car now is about $50,000, so as that increases, you can imagine, you know, it gets a point where, ‘Is it affordable?’”
Wilson said while it’s too early to judge the impact of tariffs on auto dealers and their customers, the industry has lots of moving parts, so to speak.
“Vehicles are made internationally. Now you'll have wiring harnesses made in one country. You'll have other components made in a different country. And just because a vehicle is maybe finally manufactured here, right, doesn't mean that all the components come from here.”
Wilson said if tariffs do increase new car prices, some shoppers will turn to used vehicles, and the law of supply and demand suggests those will cost more, too.
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