Although tensions around U.S. auto tariffs have made headlines, a Portage la Prairie dealership says it hasn’t felt any impact at the local level, at least not yet.
Travis McKim, General Manager at Craig Dunn Motor City, says their dealership remains largely unaffected so far thanks to how their vehicle suppliers are handling the situation.
“We haven’t really seen any price increases tariff related on any of our inventory or any of our incoming stuff yet,” notes McKim. “Our manufacturers have been eating the tariffs essentially.”
He adds that while that’s good news for now, there’s no guarantee it will last forever.
“That can only go on for so long, and the manufacturers can only afford to cash flow that for so long,” he says.
Many vehicles built in North America
McKim says one reason they’ve been spared from immediate price spikes is because much of their inventory is made closer to home.
“We have some built in Mexico and the States. We do build some in Canada and we do have a few products that are built overseas,” he continues. “One of the things that helps with GM is we do produce a fair bit of product in Canada.”
Parts pricing sees minor effects
While vehicles haven’t seen increases, McKim mentions that parts are a different story.
“We’ve seen some minor price changes on some of our parts,” he remarks. “The integration and how many times some of the components, raw materials, vehicles themselves cross the border is really what makes it complicated.”
He explains that in many cases, a single part might cross the border multiple times before it ends up in a finished vehicle, making the full effect of tariffs hard to track.
Consumer confidence a factor
While shoppers were initially curious about the news, McKim says tariff talk has quieted down a bit.
“I think it’s just more confusion in the marketplace than anything,” he says.
He also mentions that it’s not just car prices that people are worried about; some are thinking about how their own jobs or hours could be affected by broader trade decisions.
Looking ahead cautiously
When asked what he hopes to see from federal officials, McKim stresses the importance of thoughtful policymaking.
“If they can be very careful with the reciprocal tariffs that are being put on,” he mentions. “Just really being careful what they’re doing, what they’re implementing, then realizing that that will just slow down to our consumers.”
McKim adds that for now, their current inventory remains untouched by price changes, but the long-term picture is less certain.
“The long-term sustainability of that is a large question mark,” he adds. “It probably just isn’t sustainable.”
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