Connecticut weighs impact of President Trump's latest round of tariffs
Some Ford parts and models are made in other countries, but McMahon says if the tariffs actually do lead to higher prices it will be a little while until car buyers actually see those reflected in the price tags.
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Connecticut residents are weighing the impacts of a new round of tariffs on foreign goods that was announced by President Donald Trump.
The White House has projected confidence, with press secretary Karoline Leavitt telling reporters earlier in the week that "the president wants to ensure that all Americans make out well, particularly Main Street - that's the focus of these tariffs."
Connecticut Democrats, including state Treasurer Erick Russell have been more skeptical though - saying the this is just a way to make up for money being lost by giving tax cuts to wealthier citizens.
University of New Haven associate professor of accounting, finance, marketing and taxation James Mohs predicts prices will go up almost everywhere short-term, but according to him, the tariffs are not about prices.
"The key is we're taking back control," said Mohs. "(Trump's) building of this economy is all about bringing employment, and bringing job and bringing businesses back to the U.S."
If it works, that would be good news for dealerships selling cars that are already mostly made domestically, like McMahon Ford in Norwalk
"The Korean manufacturers, Hyundais and Kias do have a competitive price advantage," said owner Chris McMahon. "So that may level the playing field."
Some Ford parts and models are made in other countries, but McMahon says if the tariffs actually do lead to higher prices it will be a little while until car buyers actually see those reflected in the price tags.
"We have closer to a 90-day supply of cars. Those prices aren't going to change, those cars are either here, or they're inbound from the manufacturer," McMahon explained.
After that runs out, Mohs says any price increases that we do see might only end up being temporary.
"As more production comes out of the U.S., we're going to have a deflationary type of effect with the product, because now we're going to have more products, less money in the market, prices drop," he said.
But Mohs warned one issue we could see is that it might take a little while to get domestic production up and running enough to feel the impact.
In the meantime, the Trump administration is estimating these tariffs could raise $600 billion annually.
