There’s concern about car prices amid seesawing tariffs on foreign-made vehicles and parts set forth by President Trump. One of the leading Bloomington-Normal auto dealers says prices haven’t noticeably risen yet — and that it’s difficult to say how the tariffs will play out.
Trump signed an executive order earlier this month imposing 25% tariffs on cars and trucks imported into the U.S. Trump predicted that more auto plants would open as a result, leading to lower prices nationwide. This week he wavered and gave automakers a break on some of those tariffs, hoping to ensure that the different types of tariffs don’t stack up on imports of foreign cars.
Ryan Gremore, president of the local O’Brien Auto Team, said people can expect to see a small increase in car prices over the next year as tariffs take effect on foreign-made vehicles.
“I don’t think we’re going to see anything earth-shattering. I don’t think anyone needs to lose any sleep over it,” said Gremore, who oversees six dealerships.
Gremore said O’Brien’s current cars on the lot do not have any tariff price hikes. In fact, O’Brien has seen a “little bit of an increase in business” in the past six weeks, as customers who planned to buy later this year moved up their purchase to avoid potential price increases, Gremore said.
“All the manufacturers that I own and operate or represent have all said that they are guaranteeing all their current pricing through June 2. We know there is potential for an increase, but right now, we don’t have one,” Gremore said.
Gremore advised consumers to do more research about which cars are truly foreign made. He said Honda, despite being a Japanese brand, actually faces the least amount of risk — nearly 70% of its vehicles are made in the U.S.
A report from S&P Global Mobility predicted a decrease of nearly 700,000 car sales coming this year. Gremore said this is not an abnormal number to cite.
“There are more eggs sold in certain seasons than others — cars are the same way,” said Gremore, adding the largest concern for O’Brien Auto in this time is the state of their employees and the caretaking of customers.
“If they’re in good shape and they’re in good spirits, then they do the best job that they can to take care of our customers, and obviously our customers are vitally important to our existence,” he said.
As with many industries impacted by on-again off-again tariffs, the O’Brien team is feeling whiplash, but for now, not wavering on prices.
“I don’t know what’s going to happen; [Trump] could change his mind tomorrow,” Gremore said. “The stock market is up one day, it’s down the next. We just don’t know.”
“I’m not out buying new cars right now for fear like I’m going to have to spend tens of thousands of dollars more in a month, but I could be wrong, or everything could stay the same,” Gremore said. “We just try and look at the facts and say, ‘Here are the opportunities that could take place’ or ‘Here are the things that could happen.’”
Gremore said the state of the auto industry will largely depend on choices made by consumers.
“Consumers control the market,” Gremore said. “They decide what they want to pay for a car. If cars are too expensive, they’ll pass and they’ll find something else.”
