CORPUS CHRISTI, Texas — New tariffs on imported goods are creating ripples in the auto industry, affecting both dealerships and consumers. But what about some in the Coastal Bend?
KRIS6 News spoke with Mike Terrazas, General Manager at BMW Corpus Christi, about how these changes could impact local buyers.
According to Terrazas, most of the vehicles at BMW Corpus Christi are built in the United States, meaning his customers are largely spared from price hikes.
“Some manufacturers, BMW in particular, have said inventory units and inbound units will keep the same price; we’re not raising anything,” Terrazas said.
However, the 25% tariff also applies to certain auto parts, which could have financial implications for vehicle repairs.
“They will have an impact. Some parts are from Germany. Some are made elsewhere,” Terrazas said.
KRIS6 News also spoke with Dr. Jason Heavilin, a professor of finance at Texas A&M University-Corpus Christi, who explained the purpose behind tariffs.
“Typically, there is a healthy level of tariffs that is good for the economy. But if you pass a certain point, it could actually be damaging to the economy and the country," Dr. Heavilin said
One unexpected effect of the tariffs is an increase in pre-owned vehicle prices.
“We’ve already seen it overnight. Pre-owned prices are going up, which means trade-ins are bringing more value," Terrazas said.
The financial markets also reacted, with the Dow dropping more than 1,600 points following the tariff announcement.
Dr. Heavilin noted that the impact on retirement investments depends on how long the tariffs remain in place and when individuals plan to retire.
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