Trump's impact on auto industry uncertain

YOUNGSTOWN — Analysts say it’s too early to tell how President Donald Trump will impact the auto industry.

But they do say a large tariff on vehicle imports from Mexico in the amount of 35 percent would have an impact on sales.

“It could shift around what people buy,” said Jessica Caldwell, senior analyst for Edmunds. “The idea of a 35 percent tax is pretty severe.”

Though analysts watch for what happens with the new administration, they are projecting that the auto industry’s seven years of growth will come to a halt this year.

In 2016, the industry saw sales of 17.5 million. Edmunds expects to see sales of 17.2 million this year. Kelley Blue Book analysts expect sales to drop 1 percent to 4 percent over last year.

“Incentive spending is up across the industry,” said Tim Fleming, analyst for Kelley Blue Book. “To us, that says that demand is slowing. If they keep producing, they are going to have to sell those cars, so incentives will have to rise.”

After flourishing sales in December 2016, the industry is expected to see a drop in auto sales this month when automakers report their sales Wednesday.

For the complete story, read Tuesday's Vindicator and Vindy.com