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How car dealers and shoppers are navigating tariff impact in the auto industry

auto industry
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HIGHLAND TOWNSHIP, Mich. (WXYZ) — The first 100 days of President Trump's administration have brought a variety of changes involving tariffs that are impacting the auto industry.

Many of the vehicles are built with parts from Canada, Mexico and China. We spoke to a metro Detroit car dealer and others for a 360-degree view.

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Szott M-59 Dodge-Ram dealership Owner Thad Szott gave me an up-close look at just one of the RAM models proudly made in metro Detroit. The trucks come with a variety of high-tech parts, some from overseas.

I also ran into Ryan Rayment, who hit the gas on a purchase and asked why he decided to buy it now.

“You’re trying to get a good deal, before the price goes up and you can’t afford as much of a truck or car," Rayment said.

“Some great things I’ve seen from manufacturers to support dealers are employee pricing for everyone. Ford has A-Plan. They want to get stability in the market," Szott added.

For another perspective on tariffs that have touched every facet of the auto industry — from suppliers to shoppers and autoworkers — I wanted to gauge the pulse inside vehicle factories.

“It would shut down some of our workers. Some of our layoffs could go for weeks at a time," Stephanie Smith, who works at the Stellanis Mack Assembly Plant in Detroit, making Jeep Grand Cherokees.

Countries like Mexico, Canada and China have become central to the debate over tariffs and how likely they are to bring jobs back to the U.S. as Trump has maintained.

Figures like 25% tariffs being introduced, followed by talks of a pause, are driving some to question what happens if demand shrinks due to higher prices.

“Do you feel some of Trump's tariff policy will be helpful to the auto industry or not?"

"No, I don’t think so," Smith said.

Dale Hadel is the CEO of a global supplier that specializes in wheels. He believes suppliers could be hurting for a while. He said now there's a desire to see a level of stability restored, but he doesn't see overseas jobs coming back quickly due to cost of retooling, establishing infrastructure and higher manufacturing costs in the U.S.

“Are you worried that temporary layoffs we’ve seen could become permanent?" I asked.

"Yes. The overall situation will have a long-term effect on slowing down the auto industry," Hadel said.

For Rayment, it comes back to buying American, but also getting a gently used model to save thousands.

"I’m actually getting a better truck. More upgraded and better trim level for the same amount of money that I paid on the last one," he said.

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