LAS VEGAS — Jimmy Lodge saw an immediate response to President Donald Trump’s auto tariff plan.

Lodge, owner of My Auto Service at 6104 W. Cheyenne Ave., said his suppliers are already bracing for impact, with them saying “this is the world we live in today.”

On Wednesday, President Trump announced a 25 percent tariff on automobiles and auto parts made outside of the United States, which will go into affect on April 2 and collection starting on April 3. The goal is to spur domestic manufacturing from automobile companies, which the White House anticipates will raise revenue to the industry by $100 billion and ultimately lower new car prices.

Following the announcement, many, like Lodge, have seen the opposite response.

“We have seen everything from a 5%, up to a 50% increase (in prices) from what it was just a month prior,” said Lodge. “I have got a couple emails, couple letters just saying they are going to be increasing their prices due to the tariffs.”

The parts Lodge has seen the largest increase in has been brake pads, tires and dealer parts, as well as parts from around the world, not just Mexico and Canada. Recently, he bought a part made in Turkey from a Kia dealership that was $112 a month ago, but has risen to $133 this month, saying “we’re going full board now.”

“I hope it is rescinded,” said Lodge. “Price increases are never a good thing, because even months or years down the line, once we get all this figured out, all I know is, prices never go back down.”

Impact on consumers and Nevada

Nicholas Irwin, UNLV associate professor of economics and research director at the Lied Center for Real Estate, said he has seen cost increase estimates ranging from $4,000 to $15,000 for brand new cars.

According to Kelley Blue Book, the average cost of a new car in late 2024 was $49,740.

“It’s going to hit a lot of manufacturers very differently, depending on how much of a car is made in America, how much of its pieces are sourced from America,” said Irwin. “Some of your American made companies may not be as impacted, but say, like a Subaru or Mazda, who import a lot of their stuff, they’re going to have something on the higher end of that.”

The tariff will indiscriminately affect the global market, with little Nevada specific impact due to lack of auto manufacturing plans typically concentrated in the Midwest, according to Irwin. Although, one of the “unintentional consequences” for Nevada is higher rental car fees for incoming tourists, which could potentially impact the market, but it is unclear at this time.

The tariffs will also have indirect affects on the used car market, he said. More people who would normally look to buy a new car will turn to used cars due to higher prices.

“There’s going to be more demand, and there aren’t as many used cars as our new cars, so it’s going to push up prices in the used car market,” said Irwin. “More and more people who would have shopped in a new car market are going to be operating that used car market.”

“It’s going to be more expensive’

Another indirect affect will be repair costs, especially impacting those with older, less fuel efficient vehicles.

“It’s going to be more expensive to maintain them as they get older, because auto parts are going to be subject to these tariffs as well,” said Irwin. “So it’s going to be just generally, more expensive to own a car across every possible level.”

Lodge’s business is family-owned and operated, which allows them more freedom to work with customer’s budgets, but chains and dealerships might not have as much.

Chris Hemmersmeier, president and CEO of Jerry Seiner dealerships, a Salt Lake City-based car dealership with a Mazda and Buick GMC dealerships in Las Vegas, does not see the positives in the tariffs.

“I don’t think there’s anyway it will positively impact the market,” said Hemmersmeier. “It will have an inflationary effect on the consumer, and it remains to be seen on how much.”

Currently, Hemmersmeier believes people will be buying cars in the short term, with cars currently in-stock not being affected by the tariffs, with a dip in car sales being possible.

“I think in the long term, depending on how long they stay on, it could cause people to put off their car purchase,” said Hemmersmeier. “Eventually you need a car in most places in the West, so eventually somebody will have to buy one.”

Overall for Hemmersmeier, things are unclear, to which he said: “I don’t think it’s a good thing.”

“Hopefully it’ll become clear in the next few days, or the tariffs are rescinded,” said Hemmersmeier. “But there’s a lot of uncertainty around everything I’ve seen so far.”

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