COCKEYESVILLE, Md. — Buying a car in Maryland was already likely going to get more expensive, with new taxes and fees that are being proposed in the state's budget negotiations.
But if you were thinking - I'll head to Pennsylvania or Delaware to buy a new car instead - you probably won't find much relief there either.
On Wednesday, a 25% tariff on imports of cars and certain car parts goes into effect.
The White House says the move will strengthen the American manufacturing industry, and put an end to unfair trade practices that threaten our national security.
But it will likely come at a cost to customers.
"It's not gonna be hundreds of dollars, it's gonna be thousands of dollars," Peter Kitzmiller, president of the Maryland Auto Dealers Association said. "How much are the manufacturers are gonna absorb; how much the dealer's gonna have to absorb it; how much is gonna have to be passed on to the customers? I think we're gonna see as, as we move forward."
And it's not just new cars. Mark DiSimone, general manager of Hi Lo Auto Sales in Cockeyesville, says the potential price increases will likely impact the used car business too.
"There's the trickle down," he told WMAR-2 News. "When there's less new cars in the marketplace, there's less used cars in the marketplace. When there's less used cars, demand goes up, price goes up."
While you might think some of the American manufacturers, like Ford or General Motors, would be immune to this, Kitzmiller says it's not that clear-cut. Ford and GM get a lot of their parts from overseas, and build some cars outside the U.S. On the flip side, many foreign manufacturers have plants here in America.
"This idea of foreign manufacturers and domestic manufacturers is really kind of, it's outdated. I mean, almost every foreign manufacturer that I'm aware of in the United States has at least one plant building cars here. Many of them have multiple plants," Kitzmiller said.
The Trump administration said for imports from Mexico and Canada, the 25% tariff will only apply to the value of the non-U.S. content.
Manufacturers and dealers are mainly taking a "wait and see" approach before the tariffs hit later this week.
It's the same story down at the Port of Baltimore, one of the leading automobile importers in the country.
Scott Cowan, head of the International Longshoremen's Association Local 333, said it's too early to tell what the impact will be.
"It's a concern. Sure, it's a concern for us being the size of the car and roll-on/roll-off port that we are. It could be a major concern to us. It depends. It depends on what happens," Cowan told WMAR-2 News.
Coming off a tough year, the port is rebounding from the Key Bridge collapse and subsequent shutdown of the Fort McHenry channel.
“Our container volume is doing pretty good. It's pretty steady. It's actually probably a little bit north of where it was, pre-bridge collapse, so we've made some headway there," Cowan said. "The auto Ro/Ro business is flat, but it's flat everywhere in the US, but this could, could even impact that a little bit more."
In Maryland, residents can expect several changes to car fees and taxes if the budget passes. These include:
- Doubling the fee for a title certificate
- Phasing in an increase to the vehicle excise tax, increasing from 6% to 6.35%, instead of jumping directly to 6.8% as the House had proposed, before the tariffs were announced
- Increasing vehicle registration fees
- Increasing vehicle inspection fee
- Creating a new $5 fee for the purchase of a new tire
In Focus look other ways buying a car could cost you more