By SEAN ADAMS

pennlive.com

HARRISBURG (TNS) — As the Trump administration’s tariff policy has shifted back and forth over the last few weeks, people across many industries have braced for the unexpected.

And one such industry is automobiles, where buyers, sellers and manufacturers seem to be wary of the current uncertainty.

“No one wants to guess and be wrong, and most dealers are hesitant to speak for their manufacturers,“ said Melanie Stine, director of communications for the Pennsylvania Automotive Association.

Stine said via email that “we’ve seen both customers and dealers anxious [about] how tariffs may impact prices, especially with things changing by the day.”

She also noted that affordability has remained a major concern in the car industry ever since the COVID-19 pandemic, and the resulting disruptions in manufacturing and the global supply chain.

If tariffs do go into effect, Stine said, economists have predicted that the price of a new vehicle will go up between $3,000 and $12,000 on average.

While the issue remains a moving target, some dealerships are addressing tariff concerns directly with their customers.

In a press release, Jack Giambalvo Motor Company — whose dealerships in York and Hanover sell both foreign and domestic vehicles — announced that it is “taking proactive steps to minimize disruption and protect customers’ purchasing power.”

Its planned measures include expanding its inventory of vehicles that are unaffected by tariffs, sales and financing incentives, and a commitment to “not mark-up vehicle prices beyond MSRP.”

“I think probably everyone is concerned about what it could look like down the road,” John Giambalvo, the company’s president and CEO, said. “What it’s going to look like, three months from now, six months from now, a year from now? And of course, none of us know the answer to that.”

In theory, tariffs on foreign goods can encourage more manufacturing in the United States, as well as encouraging consumers to buy American-made products.

In practice, “there’s there’s no such thing as a 100% manufactured vehicle in the United States,” Giambalvo said.

“Every manufacturer is affected by these tariffs to varying degrees,” he said. “Every manufacturer, even the ones that have assembly plants in the U.S., are assembling components that are built all around the world.”

Ultimately, Giambalvo said, it is the manufacturers who will feel the direct effect of any tariffs — and who will have to decide if that affects the prices of their goods.

“Most of the manufacturers are absorbing [the increased costs] in the short term, just to see how all this plays out, and they’re not passing along any price increases to the consumer,” Giambalvo said. “But they’re not going to be able to do that forever.”

And even for those not looking to buy a new vehicle, costs of used vehicles may go up in response to tariffs — including the ones you already own.

“If new vehicle prices are impacted as some predict, we may see a great shift towards used vehicles, and people will hold onto their vehicles longer — leading to an increased demand for service,“ Stine said.

But she points out that replacement parts for vehicles will also be subjected to tariffs, “meaning you’ll likely pay more to keep your old car running as well.”

“It is a very global supply chain network, and so it’s a very complex situation,” Giambalvo said.

And as the basics of economics tell us, increased demand on used vehicles means the price will likely go up for them, too.

“If we see these tariffs go into effect in any kind of magnitude, that’ll certainly have impact on on used car valuations as well,” Giambalvo said.

But if you’re in the market for a new or used vehicle, now might actually be a good time to act.

The good news for consumers is that on average, dealerships currently have a bigger stock of inventory than they’ve had since 2019.

And since those vehicles are already here in the U.S., they obviously won’t be hit by any future tariffs.

“No inventories have been price affected at this point,” Giambalvo said. “So as of today, all the inventories on all the dealer lots have not been impacted by the tariffs.”

Stine noted that the general reaction from among industry professionals is cautious, but optimistic, saying “the overall mood is a positive one.”

“Dealers work every day to help their customers find the vehicle that’s right for them,” she said. “It’s times like these that remind us how important it is to have car dealers in our communities, providing sales, service, and warranty work.”