Dealers Dread Tariffs Will Reduce Sales & Cause Layoffs
Dealerships believe that a 25% tariff on imported cars could potentially dwindle new vehicle sales, upset dealership revenues and prompt job downsizings. That possibility makes US car dealership owners anxious while waiting for Trump’s decision. Roughly 2 million new-car revenues could go down the drain and sticker costs would also shoot up if this pushes through, according to analysts. This could also dissuade would-be new-car customers, cause fewer vehicle options, and result to less traffic on dealership lots. And while retailers are expecting for the worst, most are delay any operation changes—hoping the tariffs won’t materialize. Cody Lusk, American International Automobile Dealers Association’s CEO, said car import tariffs would be destructive to the car industry and could risk the 9,600 import-brand dealerships the organization represents plus some 500K+ staff.
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