As new tariffs take effect, car dealers across the country are watching closely—and none more so than those in Kentucky. Jason Wilson, President of the Kentucky Automobile Dealers Association (KADA), joins us on the latest episode of Inside Automotive to discuss the ripple effects of the tariff changes, how dealers are responding, and why this moment echoes past industry upheavals from COVID to the 2008 financial crisis.
With tariffs now in force as of early April, Wilson says dealers are reacting with a mix of concern and resilience. “It’s crazy times,” he admitted, noting the parallels to the unpredictability dealers faced during the COVID-19 pandemic. Despite growing anxiety around vehicle price hikes and inflation, Wilson emphasized that dealers are seasoned operators. “They always find a way and get creative,” he said.
At a recent lunch with Lexington-area dealers, Wilson reported that the conversation centered on the new tariffs and their potential impact on pricing. With average new vehicle prices hovering around $50,000, and interest rates already elevated, affordability is front and center for both dealers and consumers. Still, many dealers understand the broader economic argument for the tariffs—particularly the need to address long-standing trade imbalances.
“There’s also a greater understanding of the need to change things,” Wilson explained, noting that the sustainability of the current trade deficit is in question. The current two- to three-month supply of inventory provides some cushion, but dealers remain cautious about the future if the tariffs persist.
On the other hand, consumer behavior is already shifting in response. Wilson predicts a short-term push from buyers eager to purchase vehicles already on lots, which won’t be affected by the new tariffs. “This is going to give them a short-term incentive,” he said, especially as several million tariff-free vehicles remain in inventory.
Used car values are also expected to climb. The market remains tight due to leasing slowdowns during COVID, and Wilson warned that the new tariffs could further constrain supply and raise prices.
On a broader level, the tariff conversation may also be influencing consumer sentiment toward domestic brands. Wilson believes there’s a renewed “Buy American” mindset taking shape, fueled by public awareness of trade disparities highlighted by the administration. He cited reports that over 70 countries have already initiated conversations about reevaluating trade terms—clear signs, he said, that progress is already underway.
While the political and economic climate remains highly fluid, Wilson stressed that this move wasn’t a surprise: “You can say what you want about Donald Trump, but the one thing you can’t say is that he didn’t articulate what his plan was when he was president, which was we’re gonna create parity in trade.”
To his members in Kentucky, Wilson encouraged vigilance and a focus on community. With recent flooding affecting parts of the state, he praised local dealers for stepping up to support their employees and customers: “This is the time when really everybody’s coming together.”
“And the bottom line is everything is fluid, and everything can change very quickly.” – Jason Wilson
