Arizona auto dealer says new tariff on Mexico punishes his industry

May 31, 2019, 3:00 PM | Updated: Jun 3, 2019, 9:55 am
(Getty Images Photo/Carl Court)...
(Getty Images Photo/Carl Court)
(Getty Images Photo/Carl Court)

SCOTTSDALE — More outrage over President Donald Trump’s newly proposed 5% tariff on Mexican imports is coming from local car dealerships.

That’s because every car manufacturer has some stake south of the border, “whether it be just parts, or fully assembled cars shipped up,” said Marc Dubowy, owner of two Scottsdale dealerships.

He said about 20% of Mark Kia and Mark Mitsubishi’s product comes from Mexico. He adds the tariffs will drive up costs of new and used cars.

“Supply and demand are what affect used car pricing,” Dubowy said. “It just makes it tough for consumers to buy a car.”

In a tweet, Trump claims his plan would make American industry — including automakers — bring their plants home.

Dubowy said it’s not that simple.

“All of the major manufacturers have to have global capabilities when it comes to labor and shipping and parts sources,” he said. “It’s a very intricate balance.”

In that same Tweet, the president claims his tariff is about “stopping drugs and illegals.”

Dubowy countered that taxing American consumers and businesses is no way to do that.

KTAR News 92.3 FM’s Nick Funari contributed to this report.

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Arizona auto dealer says new tariff on Mexico punishes his industry