Maine is seeing a spike in car and truck sales after the Trump administration announced auto tariffs.
Wally Camp from Row Auto Group says they’re seeing a 40-50 percent spike in pucrases because of uncertainty about the tariffs.
“It’s because people are concerned about what they see coming down the road,” said Camp. “And you know, let’s say beginning of June, when the inventories on the ground are depleted. And it’s so unknown at this point as to what prices are actually going to be and how each manufacturer is going to handle them.”
He says used car sales are up because tariffs could increase their prices as well new cars.
“As you have, you know, less availability or activity in the new car side people, and the prices go up if they do, then what will happen is, is that you know there’s going to be more push and, you know, interest in the used market.,” Camp said.
Camp says Ford Motor Company has a large percentage of US assembly, which means its auto prices may be less affected by the tariffs. Meanwhile, Volkswagen has stalled vehicles coming from Mexico.
Camp said that vehicles assembled in the US, Canada, or Mexico will avoid the tariff, except for parts coming to the U.S. from elsewhere, which will be subject to a 25% tariff.
He said the percentage of US parts in a vehicle is unclear, making it difficult to predict the exact impact on prices. Also, Camp said that the US content of a car includes parts from both the US and Canada, adding to the confusion.
One automotive advisory firm is forecasting a future drop of nearly two million in auto sales in the U.S. and Canada if the global trade war escalates.