Springfield, IL  (CAPITOL CITY NOW) — On Tuesday, President Donald Trump’s 25% tariff on imports from Canada and Mexico went into effect. A 20% levy on Chinese goods also was put in place.

Wednesday, the president granted a one-month exemption on those tariffs for imports from Mexico and Canada for U.S. Automakers.

These tariffs are raising questions about the affordability of new cars. Green Hyundai General Manager Mike Quimby voiced concern about the potential strain on automakers and consumers alike.

“We’re concerned about a possible price increase on our cars and everybody else’s cars,” Quimby said. “The manufacturers don’t want to raise their prices, but if costs rise, the first things to go will be rebates and low-interest financing options.”

Trump’s tariffs, initially aimed at protecting American manufacturers, could have unintended consequences. Many U.S.-branded vehicles are built in Mexico and Canada, while foreign automakers like Hyundai manufacture a large percentage of its vehicles in states such as Alabama and Georgia. This dynamic raises questions about which companies will truly benefit from the administration’s policy.

Quimby, who has worked in the auto industry since 1977, noted that tariffs could create an unpredictable pricing environment. “Depending on the manufacturer, the price increase could be instantaneous, or it could be three to four months down the road. Once the pre-tariff inventory is gone, the next batch of vehicles will be subject to the increased costs.”

The tariffs also impact the availability and cost of auto parts. “Parts come from all over the world,” Quimby explained. “If tariffs disrupt the supply chain, we could see significant cost increases across the board.”

A rise in new car prices could push more consumers toward the used car market. “If new cars go up in price, used cars will go up in price,” Quimby said. “Not everybody can afford to buy a new car, so the used car market will absolutely flourish.”

The uncertainty has already led to a shift in consumer behavior. “Customers are acting faster because they know prices aren’t going down. Right now, they can still get incentives, low interest rates, and pre-tariff pricing, but that may not last,” said Quimby.

Despite the concerns, he remains cautiously optimistic that the market will adjust over time. But, he said, “raising the price of automobiles isn’t going to help anybody.”