Most of the country and even the whole world are nervously awaiting to see what unfolds after President Trump’s tariff plan is fully integrated into American policy. Daily, economists release new expectations and predictions for what direction this will take us. Business owners and average citizens who shop anywhere are tracking what this will mean for the new day to day life. Starting this week, on April 2, a 25% tariff was place on imported passenger vehicles, non-heavy duty trucks, and some auto parts. Missouri locals are expecting to be no exception to feeling this new economic action.

The tariff comes at a time in which car prices were just normalizing post pandemic.

With the COVID-19 pandemic, car prices when up. The pandemic caused such an economic disturbance that things like cars went through a period of unusual pricing. There was a point in which buying a used vehicle was more expensive than buying a brand new one, yet the brand new one was also seen at a high price. Now that we are decently separated from the pandemic, car prices were finding a point of regulation and normalcy again. However, these tariffs will significantly change that.

The tariff is being done with the goal to bring manufacturing back to the U.S. according to the president.

In a speech made recently, Trump said “We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth.” He says the tariffs will lead to a period of growth in the American economy that has never been seen before. However, economists argue that he made to extreme of a choice that will instead harm the U.S. economy.

Words like depression and recession have been thrown around a lot this week.

The stock market has shown significant declines since the tariffs took place. Many industries and businesses that had been doing well are falling immediately following the tariff placement.

The tariffs taking effect this week happened after they were previously postponed for a month. Three of the largest U.S. based automakers significantly pushed back against the tariffs, as even automakers based in the United States rely on the overseas market for parts. Now, several leaders in the industry have confirmed prices will be going up at dealerships.

One expert expects automotive industry issues to be seen as soon as mid-April.

Just weeks after the tariffs have been implemented, chief economist for Cox Automotive, Jonathan Smoke, says industry issues will be seen quickly. With his mid-April prediction, he explains that the industry will be suffering from tighter supply issues, leading to higher prices. With this in mind, the consumer is expected to feel the hit in the fall when the new market of vehicles are released. He explained that some companies may discontinue some models even based on how the tariffs affect them.

How much of the tariffs consumers will feel at check-out is still unknown.

Many expect some automakers to pass on the 25% tariff and increase their prices to entirely cover it. Others think that the consumer price will be increased gradually. For now, we just have to wait and see.