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In its 52-year history, the Twin Cities Auto Show has not seen many times like these. Tariffs on imported autos and car parts are changing the dynamic for sellers and buyers, sometimes in customers’ favor.

Brent and Smita Dolan brought their two young children to the Minneapolis Convention Center on the show’s opening day Friday to look for an SUV as an alternative to their fleet of four small cars.

“We came here because it’s a pain to bring kids to a dealership and this is an easy way to run around without some of that pressure,” said Brent Dolan.

The Dolans normally would have bought a used car, but they want this one to last as long as possible.

Brent says he wants to make a purchase soon before tariffs drive up the price, even though prices are “scary.” The Dolans were interested in a Lexus GX or a Kia Telluride.

“We would appreciate it if they weren’t as high as they are now. They’re going to go up. That much is for sure.”

Organizers say about 50,000 people visit the multi day show every year — and half of them are there to find the vehicle they want to buy and the dealer to buy it from.

This year’s car show comes at an unusually volatile time for the automobile industry.

President Donald Trump’s 25 percent tariff on imported cars and car parts wasn’t part of last week’s partial 90-day tariff pause.

Rachna Shah, a professor at the University of Minnesota’s Carlson School of Business, has researched manufacturing and efficiency.

Shah says it’s theoretically possible prices will fall as consumers anticipate the U.S. making more cars and delay their buying.

“What I do see is prices are likely to go up at least in the short and medium term,” Shah said.

Fears of rising prices or shortages could lead to a sudden influx of car purchases. Shah added that domestic and used cars aren't safe from potential price increases.

If imported cars become less affordable, demand for cheaper alternatives will rise, and prices could go up accordingly. Even cars that are made in the U.S. can contain parts that have crossed borders multiple times during the manufacturing process. Given all that, Shah suggests acting within the next week while inventory is there.

“If you can wait a little longer, two to three years, I think the prices, although higher than today, will have settled to a more manageable, stable norm,” Shah said.

Twin Cities Auto Show organizer Scott Lambert says there are lots of trucks at the Minneapolis event, since that’s what Minnesotans prefer.

Lambert, who leads the Minnesota Automobile Dealers Association, said prices may not rise until dealerships sell off several months of inventory. Dealerships tell Lambert some customers are rushing to buy before that happens.

The future may not deliver the same profits.

“We’ve seen recessions, we’ve seen 9/11, we’ve seen national bank failures and the dealers have hung in there,” Lambert said. “They know how to roll with the punches and they will survive.”

Alex Haddon

Author

In its 52-year history, the Twin Cities Auto Show has not seen many times like these. Tariffs on imported autos and car parts are changing the dynamic for sellers and buyers, sometimes in customers’ favor.

Tariffs may add urgency for some at Twin Cities Auto Show

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