In Response to New Tariffs, Auto Dealers Urge Policymakers to Seek Solutions
American International Automobile Dealers Association President and CEO Cody Lusk today released the following statement in response to the Trump Administration’s implementation of 25 percent tariffs on goods imported from Canada and Mexico, as well as an additional 10 percent tariff on China, beginning on Tuesday, March 4. “For auto dealers and their customers, already reeling from rising vehicle and parts prices, as well as high interest rates and insurance costs, these new tariffs pose an additional and unwelcome challenge to affordability. Tariffs can play an important role in balancing trade relationships and ensuring national security, but increasing barriers to trade also puts added pressure on the wallets of American families. In this case, tariffs could directly contribute to thousands of extra dollars on sticker prices. AIADA’s 9,400 members, seeking to protect their customers and their 560,000 American employees, urge our leaders and our trading partners to come together to negotiate a swift and practical end to these tariffs.” Click here to learn more.
Ohio Sen. Bernie Moreno Says Tariffs Worth ‘Short-Term’ Pain
Tariffs on imports from Canada and Mexico will be worth the pain it causes the auto industry because it can help curb the flow of undocumented migrants and illegal drugs to the U.S., said Republican Senator Bernie Moreno, a longtime former auto dealer. “Trump’s 100 percent right, and all of us should rally around his demand that our two neighbors step up,” the Ohio lawmaker said in interview last week. “Until they do what they need to do, yes, am I willing to take some amount of short-term pain? Absolutely, 100%.”President Donald Trump on Monday said there is “no room left” for the U.S. trading partners to prevent the tariffs from taking effect on Tuesday, reports Automotive News. Auto industry leaders have warned the measures pose major risks to industry profits, employment and sales, while lobbyists for carmakers based near Detroit have argued vehicles that comply North American parts-sourcing rules should be exempt from new levies. Nearly 100,000 people in Ohio are employed by auto and related industries, and the state is the largest producer of engines and second-biggest producer of transmissions in the U.S., according to economic development officials in the state. Click here for the full story.
GNYADA President Mark Schienberg Talks 2025 Industry Challenges and New York Auto Show
As the automotive industry grapples with evolving regulations, direct sales concerns, and potential tariffs, the Greater New York Automobile Dealers Association (GNYADA) is working to protect franchise dealers and streamline business operations. Joining us on the latest episode of CBT News’ Inside Automotive is Mark Schienberg, president of GNYADA, to discuss the association’s 2025 agenda, the ongoing debate over direct sales, and what to expect from the highly anticipated 125th anniversary of the New York Auto Show. First, Schienberg highlighted several key legislative issues the association is tackling in 2025, including credit card surcharges, warranty parts reimbursement, and administrative costs such as documentation and safety inspection fees. He noted that the New York Department of Motor Vehicles is undergoing major software upgrades, which could impact dealership operations. Additionally, he expects direct sales legislation to remain a contentious issue, particularly as automakers explore new retail models. One of the most pressing concerns for franchise dealers is the potential for legacy automakers like Volkswagen to bypass traditional dealerships and sell vehicles directly to consumers through brands like Scout Motors. Click here for the full interview.
Car Prices Poised for $12,000 Surge on Trump’s New Tariffs
Impending tariffs on Canada and Mexico risk driving up U.S. car prices by as much as $12,000, further squeezing consumers and wreaking havoc across the intricate web of automotive supply lines spanning the continent. According to Bloomberg,the cost to build a crossover utility vehicle will rise by at least $4,000, while the increase would be three times that for an electric vehicle examined in a new study from Anderson Economic Group, an automotive consultant in East Lansing, Michigan. And those costs would likely be passed on to consumers, the study found. “That kind of cost increase will lead directly — and I expect almost immediately — to a decline in sales of the models that have the biggest trade impacts,” Patrick Anderson, chief executive officer of Anderson Economic Group, said in an interview. Tariffs of 25 percent on imports from Canada and Mexico threaten to exacerbate an automotive affordability crisis that is already driving buyers out of the market. Even before the duties, sticker prices were approaching $50,000 on average, up more than 20 percent from five years ago. The situation also calls into question Trump’s campaign promises to stem inflation as consumer confidence falls to a four-year low on fears over the impact of his import taxes. Click here for the full story.
Bank of America’s Weekly Rates Market Update
U.S. Treasuries rallied across the curve as yields have dropped ~20 bps beyond the 2Y point. Moves came after uncertainty over Trump administration’s policies drove investors to safe-haven assets. The market saw risk-off sentiment in the market from tariff uncertainty and geopolitical tensions from Ukraine/Russia. This week also saw another weak consumer confidence print from the Conference Board following last week’s disappointing University of Michigan release, raising concerns that uncertainty is starting to weigh on the U.S. consumer, driving yields lower. This week, the U.S. labor market will be in focus with BofA Rates and Currencies Research expecting a payroll print of +185k and a drop down in the unemployment rate to 4 percent. Click here for the full report.
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