How Will U.S. Car Tariffs Impact Local Automobile Market?

Advertisement

Advertisement

Advertisement

NASSAU, BAHAMAS – The tariff hike is expected to come into effect on April 2nd, with economists warning that things could rapidly get more expensive.

While some dealers import American-made cars, others source vehicles from Japan.

According to Montague Motors Managing Director Brent Fox, the majority of shipments bringing cars to The Bahamas from overseas do not stop in the United States.

Brent Fox – Managing Director, Montague Motors:
“We don’t think this will have an impact directly on our cars coming from Japan. All of our cars from Japan, and the boats that carry them, do not enter or transit through American territory. Therefore, as far as we know, that tariff will not affect us.”

However, sales agents at S & L Motor feel differently.

According to the Observatory of Economic Complexity, a company that tracks global trade data, The Bahamas imported $202 million worth of cars in 2022, making it the 117th largest importer of cars globally. The primary import sources were the United States, Germany, Japan, China, and South Korea.

Some believe the tariff will directly impact those imports.

“The quality isn’t there anymore like when we first started in the car business. But in regard to pricing, it’s going to increase. People can barely afford cars now when importing them on their own, so imagine if we try to sell them? Prices are going to rise.”

In recent years, more electric cars have entered the auto market, with many sold by local EV distributor Easy Car Sales.

One of its directors, Pia Farmer, reassures that there is no need to worry for those who choose eco-friendly vehicles.

Pia Farmer – Director, Easy Car Sales:
“We source our vehicles from the country leading in electric mobility, China. Those cars do not go to the United States before arriving in The Bahamas, so we are not affected by tariffs in that way.”

For Brent Fox, this is another opportunity for local entrepreneurs to adapt.

Brent Fox – Managing Director, Montague Motors:
“We shouldn’t be relying so much on the U.S. anyway. It’s just like the egg situation, everyone was up in arms when egg prices skyrocketed, and it forced Bahamians to start sourcing eggs from the Dominican Republic. There are many countries we could be dealing with directly, so we don’t have to be dependent on what the Americans are doing.”