JAMESTOWN – A leading voice in the Western New York auto dealing business is reacting to threats made by U.S. President Donald Trump to put 25 percent tariffs on any item that is imported for the manufacturing of an automobile, including a complete automobile.
Bill McFadden, President of LUV Toyota and Jamestown Honda said if Trump makes good on his threat, ”it would be a disruption like we’ve not seen, ever.”
“Let’s assume that he means that and he does that, there’s absolutely no question that it’s going to disrupt the retail automobile industry, and also specifically in Western New York,” said McFadden.
McFadden said the negative impact from the tariff restrictions would not be felt immediately.
“There’s a period of time, there may even be an extended period of time, before it (tariff restrictions) goes into place, where there will be a disruption in a positive fashion,” said McFadden. “We’re not going to have enough vehicles, people, or supply, to handle the business we will get during that period of time.”
“But the minute the tariffs goes into effect, that business will end,” he added.
President Trump reiterated his threat on Friday to CBNC to slap tariffs on a total of $500 billion of imports from China.
McFadden fears that tariff restrictions would put an average price increase on the most standard vehicle by about $1,500.
“The most American-made vehicle on the market right now, I believe, is 25-30 percent imported parts,” said McFadden. “That’s the most American made vehicle of all. It’s so global that everybody has imported parts.”
“Who in the heck would want to buy a vehicle then?”
