Tariffs on foreign cars and parts drive prices up
MERRIAM, Kan. (KCTV) - The cost of purchasing a car in the United States is expected to rise as the Trump istration’s new tariffs on foreign-made vehicles and auto parts take effect today. Auto dealerships across the country, including those in the Kansas City area, are bracing for the financial impact, with local used car dealers already preparing for higher costs.
At Reynolds Automotive in Merriam, Kansas, owners Todd and Meredith Reynolds predict that prices on their lot will soon reflect the new tariffs. While their current inventory remains unaffected, future purchases will come at a .
“I’m going to have to raise what I thought I should pay, probably $1,000 to $1,500 a car, just to purchase the car, and then that cost is ed on to the customer,” said Todd Reynolds.
Reynolds Automotive specializes in used cars, primarily Japanese manufacturers like Toyota and Honda, which they acquire through auctions. The couple anticipates an increase in demand for used vehicles as the cost of new foreign-made cars climbs due to the tariffs.
“I would expect Toyota dealerships to be buying up cars like this to have on their lot because they know that fewer people are going to be buying their new Highlanders,” Meredith Reynolds said. “That makes fewer for us to purchase.”
Adding to the financial burden is a 25% tariff on car parts not manufactured in the United States, which could drive up repair and maintenance costs across the industry.
“I don’t think there’s any car where all the parts are made in the United States,” said Todd Reynolds. “We get a ton of manufacturing in Mexico, a ton in Canada, and then the parts go back and forth across the border multiple times. Those would be tariffs each time they cross the border, is my understanding.”
The long-term impact of these tariffs remains uncertain. While some industry experts suggest the move could eventually boost domestic manufacturing, it will take years to establish new factories and train workers.
“I don’t know how long that would take,” Meredith Reynolds said. “I mean, we’ve got to potentially build a factory and hire and train, and so that, to me, seems like it would be years in the making.”
Reynolds Automotive saw a rise in sales in March, which may have been influenced by consumer anticipation of price increases or the seasonal impact of tax returns. With their current lot of about 30 cars selling quickly, Todd Reynolds advises buyers to act now before the higher prices set in.
“I think if you’re looking to buy right now, it’d be a good time, right? Because it’s pre-tariff prices,” he said. “The rates are good. They’re not as low as they used to be pre-COVID, but they have steadied.”
If the tariffs remain in place, the Reynolds expect customers will start seeing noticeable price increases within the next month or two.
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