New import tariffs could drive up car prices, making used vehicles more valuable
YG Nyghtstorm isn't in the market for a new car anytime soon. The South Florida resident bought his Mini Cooper Countryman used in 2023, and given the rising costs of vehicles, he plans to hold onto it for as long as possible.
With a new 25% tariff on imported vehicles and key auto parts set to take effect April 2 under an executive order from former President Donald Trump, Nyghtstorm is concerned that buying or even repairing a car could become much more expensive.
"It was a decent price. It was still high, but it wasn't as high as everything else," Nyghtstorm told CBS News Miami's Steve Maugeri.
"If it [breaks down], I would move and buy something with water and a canoe because the prices are just too high."
The tariffs will apply to imported SUVs, minivans, and light trucks, as well as critical components such as engines and transmissions.
Experts warn of higher repair and insurance costs
Jessica Caldwell, an analyst at Edmunds, says the tariffs could push up the cost of both new and used vehicles—and even car repairs.
"I think anybody that is having to repair their vehicle or service their vehicle is gonna experience higher costs as well. And probably insurance. You think you get into an accident? Those are a lot of parts," Caldwell said.
The Trump administration argues that the tariffs could generate $100 billion in revenue and encourage automakers to expand manufacturing in the U.S.
For now, Nyghtstorm says he's holding onto his Mini Cooper for the long haul.
"I'm not getting rid of my baby. She's too good to me," he said.
CBS News Miami expects demand for used cars to increase as new vehicles become more costly.
