With a license plate and a set of keys on hand, Jerry Chen entered the new Toyota Hayndander she decided to buy it before the American car tariff Donald Trump began.
Chen and his wife, who have two children, bought the car from Toyota Agency in Bloomfeld, a town, a Northern Detroit suburb.
“I am very excited,” said Chen moments before entering the driver’s seat.
CBC News traveled to Motor Motor City in Michigan because of her presence in the large car industry, to find out how consumers and agent respond to definitions. Detroit is also located from Windsor, Onton, the main auto player in Canada, which includes giant factories such as Ford and Tilates.
Chen admitted that Hayndander’s purchase of the family was made sooner than he was originally planned.
He said, referring to the vehicles that might cost the road: “We felt a little anxious about waiting, as you know, six months or a year, we don’t know what will happen,” he said.
“I was already looking for a month, so I think the car itself is great, due to a new car, and with all the customs tariffs, I think it may be the time to get a new car before the prices rise.”
It is not alone. US vehicle sales increased by more than 10 percent in March compared to the same month last year, according to Cox Automotive and TD Economy Report.
The figures were issued after Trump announced in late March that, as of April 2, his administration will slap with 25 percent on imported vehicles that do not fall under the agreement of the states and Mexicans in Canada and that a 25 percent tariff will be imposed on certain primary parts that start on May 3.
“Very good rush” for car sales
Bob Beige, the owner of Toyota’s agent, said that the Chen’s family bought her car, that his sales rose by 20 percent this year compared to the same period in previous years.
“In general, we had a very good impulse. I hear it all over the country for more car purchases. People transport, and people who are thinking about doing this in the next two or three months, we are trying to do so now.”
Page also owns Honda Agency about 16 km from Toyota.
In Bloomsfield Honda, Sean Vathi, a senior sales representative on the page, said the work was good.
“As of mid -March, when the customs tariff was announced … we had a significant increase in new car sales and many buyers,” Vathi said.
“So the buyer who was on the market a month from now is now; the buyer who was in the market this summer is now. People are concerned that (the additional tariff) will happen.”
“I have a vacation … come now, and I don’t want to go because it was very busy,” Vti joked to CBC jokingly.
But Fathi knows that the sales boom can stop.
“I hope this will not happen because, as you know, why people should push more just for the customs tariff, just because someone wants to put a tariff on a vehicle. This is not fair.”
Cars that are affected by customs tariffs may cost thousands of other
according to Anderson Economic GroupThe definitions are expected to add from $ 2,500 to $ 5,000 to the price of US vehicles and up to $ 20,000 for some imported models, which cost Americans estimated at $ 30 billion in the first year.
General feelings of these CBC regarding Trump’s major plan spoke to transfer the largest possible production to the United States is that people do not oppose, but at the same time, they realize that change does not occur overnight – and at the same time, it may harm the economy.
“I feel that he is doing it for some reason, and we hope everything will succeed because, as you know, it didn’t really happen. He says he will do that and then does not do that.”
“It is annoying, but there is a stop for 90 days and we hope it will help,” he added. “I don’t know what is happening, to tell you the truth. I mean, I voted for Trump, but I don’t know what is going on.”
The owner of the other agents, George Glassman, also does not complain about the sales of sales now, but he is concerned about the future.
“Anxiety, anxiety about what the definitions will mean or may mean, it will be at higher prices. So if someone can buy a car or rent a car today, they have the certainty of knowing what the cost will be, contrary to what is on the road.”
Glassman, the owner of the second generation of the auto garden in the suburbs of Detroit, sells new and used vehicles. It carries a number of foreign brands, including Hyundai, KIA, Subaru, Genesis and Mitsubishi.
“For the time being, customers come in very good numbers, to buy pre -party cars, which are all cars on the ground,” said Galasmanan.
During the second week of April, Glassman estimated that he had received 60 -day supplies of customs tariffs on a lot.
“It will take years and years.”
According to Kelly Blue BookThe medium brand of cars had a 91 -day supply of product, and in the end, it was 70 years old. The auto provider also says that the frequency of sales in the country in March was more than 17 percent faster than February.
Although customs tariffs are only on new cars, the supply and demand dictate the saving of used cars will decrease with the consumer race to find a reasonable vehicle, thus creating an increase in these vehicles as well.
There was an increase in new car sales with drivers rushing to advance the impact of definitions. But the agents are preparing for what comes after that. David Common from CBC goes to Detroit to find out how the industry responds to the tidal incoming price for higher prices.
Despite the uncertainty, Glassman is optimistic that the tariff negotiations will produce a result that can live with it.
“I don’t think anyone could have necessarily imagined what is happening now. After I said, I am still optimistic that there will be continuous negotiations. Do I think there will be a tariff and there will be some increases in terms of the cost of vehicles?” certainly. “
Like others, Glassman sees a large Trump image, but he realizes the time that the fruits may take.
“I don’t think anyone can face a problem with this idea, and the goal of having more plants in the United States that produces more vehicles, but this is not something we will see in any short -term period. It will take years and years.“
Analysts say Big 3 car manufacturers may suffer more than others
Jato Dynamics Felipe Monoz analyst has knocked on numbers and argues The three major auto manufacturers in Detroit – General Motors, Ford and Stelantis – offer more To definitions compared to many foreign brands.
“I would like to say that it will not be easy for them, especially because some of the products that they bring from these two countries, Canada and Mexico are mainly size products, and it is difficult to transfer the production of these cars only months ago. This will not happen. So in the meantime, he will suffer in my opinion.”
He said that American car makers managed to produce cheaper cars in Canada and Mexico and sell them at competitive prices in the United States, and “this competitive position that they had for years were threatened now.”
Monoz also said that although the new trade policy aims to strengthen local auto makers, it will be affected by the smaller global presence they have, by relying heavily on local sales compared to some Japanese and European competitors.
Currently, it is not clear whether the auto industry will get a breakfast break, but Trump alluded to one or not.
On April 14, He told reporters In the Oval Office, “I do not change my opinion, but I am flexible,” which led to more uncertainty in an industry that already vibrates the whims of the president.
Until then, speculation seems to continue to increase sales.
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