COLORADO SPRINGS, Colo. (KOAA) — Auto tariffs have been a hot topic for both car owners and dealerships, sparking concerns about soaring car prices.
Five months later, local car dealers in Colorado Springs say the impact hasn't been as big as expected.
In April, the Trump administration imposed a 25% tariff on auto imports, with the goal of boosting domestic manufacturing in the United States.
"The biggest change that we've seen in our business wasn't impacted by tariffs themselves. It's impacted by maybe fear or concerns of tariffs," said Kevin Shaunghnessy, CEO of Phil Long Dealership.
He says that when the 25 percent auto tariff took effect, his business experienced a surge in customers.
"In July, businesses were normalized," Shaunghnessy said.
News5 spoke with a local dealer who sells used vehicles before the 25% tariff went into effect.
Richard Clark, Sales Manager of Lakeside Auto Brokers, says he predicted a price jump.
However, his expectation didn't happen.
"It never really hit. We are about the same market value and same prices we were," Clark said.
Clark says he wants to know if tariffs on imports, such as aluminum and steel, would eventually push up auto prices.
Scott Van Ness, Professor of Operations Management at the University of Colorado Colorado Springs, says he would expect some price increases.
However, having steel manufacturing in the U.S. could lead to greater efficiency.
Until then, Shaunghnessy says his business is waiting to see.
"If we have to supply additional discounting or specials. potening interest rate to offset the tariff impacts," Shaunghnessy said.
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