KSHB 41 reporter Charlie Keegan covers politics on both sides of the state line. If you have a story idea to share, you can send Charlie an email at charlie.keegan@kshb.com.
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Prices for new cars and trucks may go up after the United States begins collecting a 25 percent tariff on automobiles and parts made outside the country.
Scott Adams at Adams Toyota in Lee’s Summit, Missouri, said there’s a lot of confusion on exactly how the country will collect the tariff. No matter what, he doesn’t expect car prices to increase by 25% like the tariff.
“Can you [raise prices by 25%]? Sure. Is it gonna sell then? No,” Adams explained. “We’re all already bumping into affordability issues with the costs of interest rates now. If you’re going to pass a cost on to a consumer, it’s going to raise their payment or check in a market that is already somewhat tough.”
Adams said there are hundreds of thousands of cars in the United States that haven't arrived at dealerships. He estimates the cars account for a 45-day supply, so there could be a buffer time before tariffs impact prices.
President Donald Trump announced the tariffs Wednesday. President Trump says the tariffs will encourage auto manufacturers to build more cars in the United States, creating more jobs for Americans.
"So we'll effectively be charging a 25% tariff, but if you build your car in the United States, there is no tariff,” Trump explained. “Other manufacturers will come into our country and build, and they're already looking for sites."
Kyle Shroyer bought a car Friday at Adams Toyota. Shroyer said tariffs didn’t really factor into his decision. On a larger scale, he said he can handle companies passing some costs to consumers as tariffs and negotiations around tariffs create a bigger picture benefit.
“I don’t think about it a whole lot in regards to the overall process and what we've got to get done as far as manufacturing jobs here, and reducing the budget, and making sure the United States is healthy as a whole,” he said.
Trump halted the implementation of tariffs early on in his presidency, using them more as a negotiation tactic. It’s possible the tariffs might never take effect next week.
“Everyone is hoping it’s going to go away, everybody’s hoping it’ll be negotiated away,” Adams said.