HOLLYWOOD, Fla. – With President Donald Trump announcing a 25% tariff on all imported vehicles and auto parts, workers in the auto industry right in South Florida are reacting and voicing their concerns.
SoFlo Auto Club head Andrew Mangini, who has worked in the industry for decades, expects to see sticker shock.
“These parts go up 25% it’s really going to hurt us,” Mangini said. “We’re all trying to pay attention to it. It’s having us all worried.”
Economists warn some new foreign car dealers could pass the cost on to consumers, even insurance could go up. But Mangini says if you think used cars are safe, think again.
“Not at all. We spend a lot of money to get these cars back to new for the next customer,” Mangini said, noting that requires new parts, which are also subject to tariffs.
Even cars from American companies contain a significant amount of foreign parts.
“There’s this Jeep,” Mangini said, pointing to an SUV. “The Jeep is the All-American Dream. 80% of this Jeep is manufactured in Mexico.”
Trump has said the tariffs are necessary to address the threat to national security, he says, brought on by a reliance on imports, and expects them to generate $100 billion in annual revenue for the United States.
Mangini and Karim Kassim, who owns neighboring Auction Autohouse, say they’re buying cars before the tariffs go into effect.
“And also we’re buying all the parts that we need for these cars,” Kassim said.
Mangini adds, “We’re stocking up in warehouses right now, just in case.”
The tariffs are scheduled to go into effect in April.