In today’s episode of Inside Automotive, Peter Cooper, president and CEO of Lexus of Lehigh Valley shares his thoughts on the potential impact of the new auto tariffs and what it could mean for retail automotive.
April sales at Lexus of Lehigh Valley saw a slight decline compared to March. While there were unique circumstances behind the dip, Cooper notes a broader sense of concern and volatility among consumers and dealers. Though measuring the magnitude is difficult, unease is increasingly present in the market.
Host Jim Fitzpatrick mentions that many dealers experienced a spike in March sales due to tariff-induced demand, with buyers rushing to showrooms ahead of anticipated price increases. Cooper agrees with the assessment and notes that a scarcity mindset is driving consumers. However, he emphasizes that this demand surge was likely driven by customers who had planned to purchase vehicles in the summer and moved up their timelines. In his view, this pattern does not indicate sustainable long-term demand.
Despite short-term shifts in consumer behavior, Cooper cautions dealers against reacting to tariff headlines when making business decisions. Instead, he urges them to maintain stability for their teams and customers.
On the broader political implications, Cooper believes the industry is trying to solve the wrong problems. He suggests that Americans tend to fear presidents, regardless of who is in office, when the genuine concern should be government intervention, primarily through executive orders. He points out that with a single signature, business and investments can be upended, discouraging companies from committing to operations in the U.S.
He also raised concerns about Congress’s dysfunction, noting that this legislative paralysis often forces presidents to act unilaterally, creating a perception of autocratic leadership. In his view, this dynamic contributes to market instability and further fuels uncertainty.
Cooper acknowledges President Trump’s willingness to take bold action regarding the tariff situation. However, he expresses skepticism that there is a clear strategic vision behind the moves. He recalls when the tariff announcement was made, his OEM partner, Toyota, had no details on how the policy would be applied, suggesting a lack of transparency from the administration.
Cooper applauds the courage to try new approaches but criticizes the execution, describing the communication as unclear and often perceived as boastful or vengeful. Without a well-articulated plan, he believes it’s difficult for businesses to respond effectively or confidently.
At the 2025 NY Automotive Forum, CBT News spoke with Senator Bernie Moreno, who described the tariffs as a likely short-term distraction. Cooper agrees with that perspective, adding that dealers attempt to make sense of a situation with limited information and no clear resolution.
In the meantime, Cooper stresses the importance of focusing on consumer behavior and closely watching how the administration operates to uncover meaningful patterns. He encourages his fellow dealers to resist overreacting to headlines and instead remain grounded.
Ultimately, Cooper reminds us that despite all the noise, dealers must step back and recognize that each day brings opportunity.
"I don't know what they're going to be or what they mean. To try and adjust and play with our consumers and more importantly, my employees' lives–it's just not reasonable." – Peter Cooper
