Trump auto tariffs are in effect. Here's what Dallas car dealers think

New tariffs are in place today on automobiles built outside the United States. Some products from every car company will be impacted, because most cars aren't made with entirely American parts. 

Tariffs are certainly going to have some effect on the car business, a big part of the U.S. economy.

One Dallas dealer says while the tariffs will cause some uncertainty, there will be pros and cons for consumers.

What they're saying:

"It is going to have an effect, but there's going to be some good, you know, pros and cons," said car dealer Clay Cooley. "So only about 40% of each manufacturer's automobiles are going to be affected. It's not going to affect 100% of the cars out there, and you have to remember the cars on the ground aren't getting repriced, so the cars that have already been built and paid for they're not going to get the tariff on them."

Cooley says manufacturers are coming up with ways to help customers as well. 

"Nissan lowered their MSRPs on their top-selling cars by $1000," said Cooley. "Ford came out with employee pricing for everybody, which is a great deal, so they're looking to gain market share. KIA said they're going to gain market share. Hyundai, they're going to gain market share."

Automaker company Stellantis, which makes Jeep, Chrysler and Dodge products, is reacting to the tariffs differently by temporarily taking some plants offline in Canada and Mexico. The company is also laying off 900 workers at U.S. plants.

RELATED: Trump imposes 25% tariff on imported cars: 'This is permanent'

The major car company, Volkswagen, seems to have a different approach to these tariffs.

"Volkswagen says they're not going to bring some cars in for thirty days and see what happens, because we don’t really know how long this is going to last or what's going to happen. So everybody is kind of slowing down on production because we have 60 days of cars on the ground," said Cooley.

The other side:

The only thing that worries Cooley is if these tariffs from the Trump administration are here in the long run.

"So I think it’s going to be a great opportunity for the next 90 to 120 days and if the tariffs stay on for, you know, longer than that, there could be some issues, but we're not sure if they're going to stick or not."

The Source: Information in this article comes from a FOX 4 conversation with Clay Cooley.

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