The recent announcement of new auto tariffs has sent shockwaves through the industry, with car dealers scrambling to adjust their strategies and prepare for the impact. In an exclusive interview with Business Insider, Scott Kunes, COO of Kunes Auto Group, a company operating 30 dealerships in Illinois, Iowa, and Wisconsin, shared insights on how the tariffs will affect consumers and the business.
According to Kunes, industry sales have seen a significant boost, with a 14% month-over-month increase as the tariffs came into effect. However, dealers are now focusing on maintaining supply chains, particularly for parts, as some components may be affected by the tariffs.
Kunes noted that while some manufacturers, like Toyota and Honda, will bear the brunt of the tariffs, others, such as Hyundai, have a more favorable position due to their domestic production. The auto industry is also anticipating inflationary pressures, which have already been felt in recent years.
To mitigate the impact, dealers have pivoted towards used vehicles, with some lots buying and reselling older models at lower prices using imported parts. Kunes emphasized that the tariffs will affect both new and used markets, particularly those focusing on lower-end price ranges.
While the long-term effects of the tariffs are uncertain, Kunes sees a potential benefit for the US auto industry, as they will boost domestic manufacturing. However, dealers must adapt to these changes, prioritizing sales and meeting consumer demands while navigating the new landscape.
As the situation continues to unfold, car dealers are closely monitoring developments and looking for ways to thrive in this new environment.
Source: https://www.businessinsider.com/car-dealer-stocking-vehicles-parts-as-trump-tariffs-hit-2025-4