A Council Bluffs mechanic believes that if Trump Administration tariffs remain in place, the cost of car repairs will rise.
- “The suppliers that supply to us, they’re going to have an increase because, you know, they have to absorb that and then we, as the wholesaler, will sell the part to the customer as another markup,” said Rod Pressgrove over the phone. “So there’s going to be, yeah, there’s definitely going to be some price increases.”
- UNO business professor, Ahn Ta: “Our costs – for sure – the car price for the new car will increase … used car might not be impacted right away, right, because it’s like a secondary market, but later in can increase.”
Hey, this is the Midwest. We spend a lot of time in the car. We enjoy a good road trip, and many of us do not mind long commutes. But what if the cost of maintaining our vehicles increases due to tariffs?
Katrina Markel is your neighborhood reporter in Council Bluffs.
Rod begins: “RP Performance, this is Rod.”
Natalie: “Hi, Rod, it is Katrina, again, from KMTV.”
Rod Pressgrove owns RP Performance, a car repair shop in Council Bluffs. I caught him right as he was about to leave for the afternoon.
“The suppliers that supply to us, they are going to have an increase because, you know, they have to absorb that and then we, as the wholesaler, will sell the part to the customer as another markup,” he said over the phone. “So there is going to be, yeah, there is definitely going to be some price increases.”
Another Council Bluffs mechanic told me that auto parts often cross the border twice or three times in North America before being installed in a vehicle.
Ahn Ta, a UNO business professor, told me that tariffs can encourage more domestic manufacturing in the long run, but the effects take several years to manifest.
These same companies will have to offset labor costs through innovation, automation, and potential tax cuts.
Meanwhile, consumers face higher prices.
Katrina asked: “… How will that affect the average consumer that maybe wants to go out and buy a new car?”
Ahn Ta, the accountant: “Our costs – for sure – the car price for the new car will increase … used car might not be impacted right away, right, because it is like a secondary market, but later in can increase.”
Ta explained that as car values rise, so do insurance rates. Farmers and other businesses that rely on transportation are likely to feel the effects of these increases.