Marketplace All-in-One Auto repair shops struggle under Trump's tariffs
Jun 20, 2025
Tariffs enacted by the Trump administration are causing unexpected price hikes for auto repair shops, impacting their business. A visit to a Vermont garage reveals the struggles faced by mechanics and car owners alike. The economic ripple effects extend beyond the auto industry, with cities revamping waterways for recreation and potential profit. Also discussed are the Philadelphia Fed’s reports on slumping manufacturing jobs, highlighting the interconnected nature of current economic challenges.
AI Snips
Chapters
Transcript
Episode notes
Data Collection Challenges Loom
- Reduced government economic data collection risks lowering data quality, impacting policymaking.
- Private sector data can supplement but not replace official statistics.
Manufacturing Hiring Pause
- Manufacturing demand and production have dropped, leading to the lowest factory employment since early pandemic.
- Tariffs and supply chain issues cause postponement in hiring and investment decisions.
Tariffs Increase Auto Parts Costs
- Trump's 25% tariffs on some car parts greatly increase costs for small auto repair shops.
- Many shops switch to cheaper third-party parts to manage price spikes and stay competitive.