The auto industry is bracing for changes after President Donald Trump announced a 25% foreign auto tariff, claiming that it would cause factories to move production back to the United States, ushering in a golden era for the U.S. economy. Experts explain how this could impact – positive and negative - Washington drivers – regardless of where their vehicle was made.
KIRO 7 News spoke with management at Fix Auto Tacoma South.
Kameron Antle, who has been working in the auto industry for 25 years, said the tariff could impact thousands of drivers across the region who are not only looking for a new vehicle, but also who may need repairs.
“Anything made outside of the U.S. will have a certain percentage of inflation on there,” said Antle.
If insurance companies have to pay more to fix damaged vehicles, Antle said he believes insurance premiums may also rise to cover the additional costs, which is why he believes more insurance firms may shy away from repairing cars.
“If stuff is getting more expensive, it’s going to hit that threshold faster. I think they’ll end up totaling more cars than fixing them,” he added.
And even if your car is made in the United States, William Ngo, shop owner, said drivers could also see the impact as many insurance companies prefer to use cheaper parts to repair a car to keep their costs low.
And those cheaper parts are usually made overseas, he added.
“A lot of insurance companies right now, they want you to put after markets parts on and stuff, and on the customer’s car, and those parts are made from China, Korea. Not just the United States. It will affect everybody,” he said.
KIRO 7 News also asked management if the tariff could help consumers.
Ngo said the quality of auto parts could improve if produced locally as the quality control standards in the United States are usually higher than in foreign countries.
“They don’t have the quality or the standards we have here in the United States. I think the stuff here in the United States is a lot better quality,” he shared.
While it may take years to build local manufacturing plants locally, Antle said it could also generate more local jobs to help the economy.
“I could see them building in house and making them better quality and still selling them cheaper than the tariffs applied,” he added.
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