NATIONAL CITY (KGTV) — On Wednesday, President Donald Trump paused tariffs on the auto industry for 30 days.
Initially, the 25% tariffs on imports from Canada and Mexico were supposed to kick in on March 4th, alongside a 10% tariff on Chinese goods. The tariffs were designed to force action on border security and drug trafficking, while boosting U.S. manufacturing.
President Trump's decision on Wednesday came as major U.S. automakers like Ford, General Motors, and Stellantis warned that the 25% tariffs on imports from Canada and Mexico would devastate their operations.
Karoline Leavitt, White House Press Secretary, announced on Wednesday, "We spoke with the Big Three auto dealers, and we're going to give a one-month exemption on any autos coming through US-M-CA [United States–Mexico–Canada Agreement]."
With proposed tariffs on the horizon, a local car dealership shares timely advice.
Timothy Mendoza, owner of ZZ Motor LLC in National City, said his advice to car buyers on a budget is clear - act fast before prices climb even higher.
"The sooner, the better before those tariffs go into effect," Mendoza said.
ZZ Motors LLC is a small used car dealership on National City's Mile of Cars, which specializes in selling cars under $5,000.
"All of them are clean title, passing smog certificate in hand, fresh oil service, and detailed inside and out," Mendoza said. "I choose to sell cars $5,000 and under because the deals are easy. Most of them are cash deals because a lot of the banks don't want to finance a car that's over. They're good for people who need a 'starter' car."
However, Mendoza believes his price points could change with the tariffs on the auto industry expected to take effect on April 2nd. That's why he's urging people to buy as soon as possible.
"Right now, the tariffs haven't really kicked in and trickled down to the actual used car lot, but things can change in a few months from now as the tariffs kick in. When the inventory lessons, you'll definitely see the prices go up," Mendoza said.
Mendoza also anticipates that the tariffs will force people to hold onto their used cars, which will make inventory at used car auctions slim.
However, Mendoza said he's weathered market fluctuations before, including during the COVID-19 pandemic.
Mendoza said he's prepared to adjust if the market fluctuates once again, even if it means having to sell cars at a higher price than his usual clientele would expect.
"Like right now, a car that I'm selling for $5,000, maybe in a couple of months, that same exact car will be $5,500 because of the extra work and the less availability of used cars," Mendoza estimates.
GM's statement in reaction to today's WH announcement to be attributed to a GM spokesperson:
"We thank President Trump for his approach, which enables American automakers like GM to compete and invest domestically. With more vehicle assembly plants in the U.S. than any other automaker, GM has invested over $60 billion since the USMCA took effect, and we continue to invest billions of dollars every year in our manufacturing base, supply chain, and U.S. jobs. We are committed to continued growth and delivering winning vehicles to American consumers."
From Ford:
“As America’s top auto producer, we appreciate President Trump’s work to support our industry and exempt auto companies complying with USMCA. Since President Trump’s successful USMCA was signed, Ford has invested billions in the United States and committed to billions more in the future to both invest in American workers and ensure all of our vehicles comply with USMCA. We will continue to have a healthy and candid dialogue with the Administration to help achieve a bright future for our industry and U.S. manufacturing.”
Attributable to Stellantis -
“We thank President Trump for the decision to grant a one-month exemption from tariffs to USMCA-compliant products. We strongly support his determination to enable the American automotive sector to thrive, and in the first 100 hours of his new Administration we announced major investments to grow our business in America. Since the USMCA was enacted in his first term, we invested billions in our U.S. activities and U.S. suppliers. We share the President’s objective to build more American cars and create lasting American jobs. We look forward to working with him and his team.”
