The 25% tariff that President Trump has placed on imported cars and parts is set to start on Thursday.
This could cause more consumers to flock to the used car market.
But will there be significant deals awaiting them there?
Mark Rosa, Professor of Practice at UNO says it echoes the same situation as with the pandemic. While foreign cars were not being manufactured or shipped, the domestic market, in particular used cars, were in demand.
However, in what he describes as Economics 101, Rosa says the prices jumped quite a bit.
"There were used cars selling at almost their brand new price. I liken it to that [time] where the cars will be cheaper but higher than the price that they would have or should've been."
Rosa says not all is lost on the foreign side noting, that some overseas brands actually manufacture on US soil.
That being said, there will be ripple effects across the industry. Like for those who do not have decent credit, this could prove particularly difficult.
"They may have to reach back even further, buying much older cars with higher mileage in order to find the deal that best fits them."
The tariff on foreign vehicles is set to take effect later this week.
