Car dealerships seek clarity on tariffs

MINOT, N.D. (KMOT) - A 25% tariff on cars and parts imported from Mexico and Canada is set to take place in the coming weeks.

One of the ideas of tariffs is to encourage domestic production, yet consumers and producers are still left wondering how they will be impacted.

General manager of Williston Auto, Drew Balough, said the number one question he’s been asked is if car prices will rise.

Although he cannot determine an answer until tariffs actually go into effect, he said they are trying to get ahead of the curb.

“We’ll probably steer [consumers] a little bit more to what’s already available. What we have here in stock,” said Balough.

The tariff order said vehicles made entirely within the U.S. or ones that meet the requirements of the United States-Mexico-Canada Agreement (USMCA) may be exempt from tariffs.

However, Balough said that poses confusion on cars that are partially manufactured in those areas.

“If 36% of that truck is put together in Mexico, and another 36% is Canadian, and then the rest is assembled for example in Indiana—how are they going to tax that? So, we don’t have all the answers yet,” said Balough.

He said as for his dealership, there are no changes to announce just yet.

“The last few years the auto industry suffered because of the chip shortage, the pandemic and we’re just now thankful we’re back to full stock,” said Balough.

He said the auto industry has been the best they’ve seen in the last several years, and said he’s hopeful to get through this potential hump.

When asked whether it’s a good time to buy a car right now, Balough emphasized the importance of doing research as market conditions are constantly evolving.

The tariffs on vehicles are expected to go into effect on April 2.