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Car parts, vehicle prices could rise as tariffs on China take effect

Car parts could be more expensive with tariffs on China
Car parts could be more expensive with tariffs on China 02:16

MIAMI - Car parts and vehicles could become more expensive as new tariffs on Chinese imports take effect, business owners say.

"Price-wise, made in China usually means cheaper," said G. Adoni, who works in the auto parts industry. "

Either buy an American-made muffler, which is going to cost a little more money, or you get a Chinese muffler and save a couple of dollars."

But that may soon change. President Donald Trump has announced a 10% tariff on imports from China, as well as a 25% tariff on imports from Canada and Mexico. However, the tariffs on Canada and Mexico will be delayed by one month.

Adoni said higher costs for Chinese-made products will ultimately be passed on to customers.

"Unfortunately, it's just the cost of doing business," he said.

Many essential car parts - such as brake pads, calipers and water pumps - come from China, Adoni said. He emphasized that he won't profit from the tariffs, as he sells parts at the same price he originally paid.

"Hopefully, five or ten years from now, inflation comes down and we start producing more in America," he added.

The impact isn't limited to parts - car prices themselves could also rise.

Major automakers, including Ford, General Motors and Stellantis, have manufacturing plants in Mexico and Canada.

Tom Maoli, a new and used car dealership owner in New Jersey, estimated that tariffs could increase vehicle prices by 5% to 15%.

"Anything that has not been shipped yet or is at the dock getting ready to be shipped into these ports - that's ultimately going to go into a vehicle to be manufactured - it's immediate," Maoli said.

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