Texans cautiously assess the effect of Trump's tariffs on their cherished pickup trucks.
Worried that US President Donald Trump's 25 percent tariffs on imported vehicles and car components might cause "anxiety" amongst purchasers and increase costs, Arthur Bibbs has opted to purchase a used pickup truck immediately.
In Houston, which is the biggest city in Texas and ranks as the fourth most populous city in the U.S., HADA reports that 80 percent of newly bought vehicles are trucks.
(Copyright: RONALDO SCHEMIDT / AFP)
"I misplaced my truck during a storm, and I decided to purchase another vehicle promptly before the situation became more complex," explained Bibbs, a 38-year-old Texan employed at an electrical firm.
In this expansive southern state—where industries like oil, farming, cattle raising, and energy production reign supreme—people have a strong affinity for their trucks, be they pickup trucks or sport utility vehicles.
In Houston, which is the biggest city in Texas and ranks as the fourth most populous city in the U.S., HADA reports indicate that 80 percent of newly bought vehicles are trucks.
Across the country, the percentage stands at 74%, with Ford’s F-Series, Toyota’s RAV4, and Chevrolet’s Silverado topping the list. However, neither these models nor those bearing iconic American names are entirely “ Made in USA.”
Many incorporate components manufactured in Canada or Mexico as per previous North American accords, which are currently being challenged due to the trade conflict initiated by Trump.
Despite assembling cars in the U.S. using parts from various nations, "they will definitely increase the prices," explained Tino Ruiz, owner of a dealership located just north of Houston in Magnolia.
Taxes or charges imposed on imported goods—often referred to as tariffs—usually influence the cost borne by buyers.
The U.S. President has stated that by levying tariffs on automobiles and automotive components, he aims to repatriate manufacturing within the nation. However, economists argue that significant internal labor expenses and various other elements could complicate this objective.
The tariffs might thwart the White House's aim of bringing manufacturing back to the U.S. by making final assembly operations too costly stateside, according to a report from the Center for Strategic and International Studies.
- "Will sense that impact"
RoShelle Salinas, who serves as the vice president of the Houston Automobile Dealers Association, stated that in the near future "there could be a slight rise in car purchases because consumers looking for good deals try to avoid anticipated hikes in prices."
She calculated these price increases to range from $3,000 to $10,000 based on the type of vehicle.
Given that the typical new car in the U.S. currently sells for over $50,000 -- with trucks being even pricier -- "we'll experience that impact regardless of circumstances," according to Salinas.
The feeling conveyed is that all these tariffs will ultimately affect consumers who purchase goods," she explained. "And that includes both you and me."
Ruiz, who owns the dealership, mentioned that he could see profits increase temporarily due to higher sales volumes.
However, he stated, "Sooner or later, I'll need to cover the substantial cost of acquiring another car," and "This expense will ultimately be passed on to the client."
Bibbs, who was his first customer of the month, mentioned he felt compelled to "go ahead and get myself a car now."
He opted for an American model — ultimately choosing a full-sized Dodge Ram pickup — believing that the updated tariff plan would ensure that domestically produced spare parts remain more affordable when it’s necessary to maintain his vehicle.
He mentioned that he intentionally chose an American-made car for those specific reasons.
-'Improve automobiles' -
Ruiz mentioned that he backs local brands yet acknowledges the benefits of globalization.
He thinks that competition is what propels all progress, and he opposes forcing anyone to purchase specific brands—or exclusively American goods.
He mentioned that unfortunately, American cars tend to be more disposable. Once they reach 100,000 miles, they usually develop issues and need to be replaced.
When you purchase a Japanese vehicle like a Toyota or Honda, they can maintain their performance for up to 200,000 or even 300,000 miles.
Alright, if you're set on doing that, improve the quality of cars.
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