BAKERSFIELD, Calif. (KERO) — New car prices and car parts are expected to spike with the new U.S. tariff policy.
- U.S. tariffs on imports from Canada and Mexico could impact the automotive sector.
- Local business owners, like William Jackson, believe tariffs won't directly affect consumers yet.
- About 40% of car parts in the U.S. come from Canada and Mexico, potentially raising costs.
- Some consumers are optimistic about tariffs boosting U.S. business.
- President Trump has delayed the 25% tariff implementation, but the timeline remains uncertain.
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BROADCAST TRANSCRIPT:
President Trump's tariffs on imports from Mexico and Canada may potentially impact several industries including the automotive sector. And with the tariffs in place, local auto repair shops say products will become scarce.
Kern County's automotive-related industry is bracing for higher costs if President Trump follows through on a 25 percent import tax on products from Canada and Mexico.
If this were to take effect, car manufacturers could face higher costs.
"It's going to raise the price of parts, which is also going to affect availability," said Local Auto Repair Shop Owner Karen Shuford.
According to Scripps News Group, this could ultimately impact the cost of new cars or car parts since approximately 40% of the parts used in vehicles sold in the U.S. come from Canada or Mexico.
However, Shuford believes the tax won't significantly impact consumers in general, and will benefit the country as a whole.
"The American product is worth something, and so I think it should have a tax on there to help America," said Shuford. "Everybody else charges us when we send out products to them, so I think it's a good idea to have it."
Other business owners like William Jackson, with Precision Automotive, say they don't believe tariffs will affect their business or their customer's pockets.
"I don't think the tariffs are designed to punish the consumer. I think that they more punish the supplier than the consumer and I think a lot of people really don't understand that," explained Jackson.
While some customers may be uncertain about the higher prices taking effect, others say they are excited to see them create more business within the United States.
"I think it's going to be great for the country. It's going to build more jobs. It'll keep the money here in the country instead of transferring it," said Precision Automotive Customer Derek Speight.
President Trump did place a one-month exemption to the 25% tariff on vehicles and auto parts traded in North America, but it is unclear when the tariffs will take effect.
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