Arthur Bibbs, a 38-year-old electricity industry worker, fears the impact of President Donald Trump’s 25% tariff on imported vehicles, including pickup trucks. He anticipates this could drive up prices and make people ‘paranoid’ before any real effect is felt. Bibbs has decided to purchase a used Dodge RAM before the situation worsens.
Tariff Impact
- General Effect: Tariffs typically increase the prices consumers pay for vehicles and auto parts.
- Texas Preference: In Texas, a state known for oil, agriculture, and livestock, pickup trucks (or ‘trocas’) are a common sight on its roads. In Houston—the fourth largest U.S. city with 2.3 million inhabitants—pickup trucks accounted for nearly 80% of new car sales in 2024.
- Historical Context: This preference may be partly due to the ‘chicken tax’ (also 25%) imposed since 1964 against imported pickups, as retaliation for European restrictions on U.S. chicken imports.
Potential Consequences
Price Hikes: Industry experts predict that Trump’s automotive tariffs will disrupt supply chains and raise costs for consumers, possibly by $3,000 to $10,000 per vehicle.
Dealer Reactions: Tino Ruiz, a used car dealer in Magnolia, Texas, anticipates increased pre-tariff purchases as consumers try to beat price hikes. He also notes that many auto parts are currently sourced from neighboring Mexico and Canada due to free trade agreements now threatened by Trump’s policies.
Global Considerations: Some argue that higher tariffs could undermine the ‘Made in USA’ status of iconic brands like Ford F-Series and Chevrolet Silverado, as their components are increasingly sourced internationally. Ruiz advocates for better vehicle quality over protectionist measures.
