The head of Maine’s largest car dealership has revealed how car buyers can dodge hiked-up prices as President Donald Trump’s tariffs roll into effect.
Adam Lee, the owner of Lee Auto Malls, said people need to act fast, as the cheapest time to buy a vehicle is within the next two months.
‘If you weren’t planning to buy a new car, don’t rush out and buy one just for the heck of it,’ Lee explained his point to the Portland Press Herald.
‘But I’m telling people, “If you think you’re going to buy something, by it in the next two months.” I wouldn’t wait.’
His reasoning is simple. The cars sold until June likely arrived in America before the Trump-imposed 25 percent tariff on all imported cars and car parts launched on Thursday.
Across all eight Lee Auto Mall lots across Maine, there are about 1,000 available new cars and 600 used ones that arrived before tariffs increased, Lee told the Portland Press Herald.
But once this supply runs out, the expert warned the entire car industry, from customers to dealers and mechanics, will feel the financial strain.
‘Does anybody win? No,’ he asserted.
The US already imposed a 2.5 percent tariff on imported passenger vehicles. But the Trump administration tacked on a staggering 25 percent more, amounting to 27.5 percent.
Car sellers and car seekers alike are bracing themselves for impact, as half of the cars in the country are foreign made.
Lee said that buying American-made cars will not be much of a bargain either, as brands including Dodge and General Motors still get their parts from other countries.
Portland, Maine, resident Brian Keller is particularly alarmed by what the future holds for the automotive industry because his 2009 Hyundai sedan is on its last leg… or wheel, in this case.
His original plan was to save up for an electric vehicle, but the two-month time crunch has shifted his perspective.
‘It makes it hard to plan everything in terms of budget and timing,’ Keller told the Portland Press Herald.
‘Everything feels more chaotic than it has in a long time.’
On Wednesday, Trump declared that foreign trade and economic practices have sparked a national emergency.
All nations will be faced with at least 10 percent tariffs on all US imports starting on Saturday.
But more than 90 countries will be hit with additional reciprocal tariffs in order to make the US ‘wealthy again’ by April 9.
Reciprocal tariffs, according to the White House, are the rates ‘necessary to balance bilateral trade deficits between the US and each of our trading partners.’
Some countries, including Japan, South Korea, China and Great Britain, face individualized tariffs, calculated by the White House while factoring in those nation’s policies.
‘My fellow Americans, this is Liberation Day, we’ve been waiting for a long time,’ Trump proclaimed on Wednesday.
‘In a few moments, I will sign a historic executive order instituting reciprocal tariffs on countries throughout the world.’
As Trump spoke the stock market tanked – with Dow futures dropping more than 250 points, the S&P 500 falling 100 points and Nasdaq futures decreasing by more than 400 points.
The tariffs are set to impact not only countries, but companies. Nike makes about 25 percent of its shoes in Vietnam, which is getting hit with a 46 percent reciprocal tariff.
Adidas also manufactures in Vietnam – the country responsible for making a third of US footwear.
Critics have warned against these historic taxation plans, with business experts explaining how American’s wallets will hurt as well.
David French, the executive vice president of government relations at the National Retail Federation, a US trade body, said: ‘More tariffs equal more anxiety and uncertainty for American businesses and consumers.
‘While leaders in Washington may not care about higher prices, hardworking American families do.’