COLORADO SPRINGS — President Donald Trump imposed 25% tariffs on auto imports. The administration says the tariffs on cars will go into effect on April 2.
Some local car dealerships in Colorado Springs say they are closely monitoring the situation and possible impacts from this tariff.
"It's going to be an uphill climb," said Richard Clark, Sales Manager of Lakeside Auto Brokers.
Clark has been selling cars for 26 years. He says the manufacturing process differs by car brand.
"Range Rover, Jaguar, Dodge, Jeep, Ram... a lot of parts are from different parts of the world," said Clark.
Clark welcomes President Trump's tariffs on car imports because they could attract more customers to businesses that sell used cars. However, it wouldn't be the same for every dealership that sells new cars.
"There's no way manufacturers can absorb a 25% increase," said Clark. "After talking to new car franchises, it (price) will increase."
Scott Van Ness, a Professor of Operations Management at the University of Colorado, Colorado Springs, says the tariff could be helpful for the country, but many companies might have to prepare for some bumpy roads.
"They are going to have to look to make sure there's labor right away in this market," said Van Ness. "The good side is that new factories are more efficient... (in) more robotics, more AI technology, and they are going to be cleaner than old factories."
"For the long run, if we get those manufacturers here, it's also going to increase the amount of cars that are available to us that we can sell," said Clark.
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