No Relief for Auto Tariffs, Record 84-Month Loans, Customer Service Woes

Automotive State of The Union

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Episode #1014: Today, we’re covering President Trump’s pause on reciprocal tariffs leaves auto imports still facing steep duties, while a record number of buyers turn to 84-month loans to afford today’s rising prices.

Show Notes with links:

The auto industry is still squarely in the tariff crosshairs, even as President Trump backs off his broader reciprocal tariff plan. While a new 10% base tariff replaces most of the global duties, the 25% tariff on vehicles—and key materials like steel and aluminum—remains firmly in place.
- Treasury Secretary Scott Bessent confirmed auto, steel, and aluminum duties are sector-specific and still active.
- Despite ongoing auto tariffs, markets surged on the pause news—Tesla jumped 22.7%, GM rose 7.7%, and Ford gained 9.3%.
- Industry leaders are pushing for relief with MichAuto’s Glenn Stevens Jr. advocating for protecting the international supply chain, calling the fragmentation “harmful” to competitiveness.
- President Trump said he would consider exempting specific companies from tariffs, saying “We’re going to take a look at that.”

More new-vehicle buyers are turning to 84-month loans than ever before, highlighting just how financially stretched today’s car shoppers remain.
- According to Edmunds, 20% of Q1 new-vehicle loans were for 84 months, up from 16% in 2024 and 13% in 2019.
- The average amount financed also jumped to over $41K compared to $32K in Q1 2019.
- On the used side, 12% of loans ran 84 months, more than double the 5.3% seen in 2019, with an average of $28K financed.
- Dealer Michael Cummings of I-10 Toyota: “I really, really don’t like going 84 months... it’s not healthy for the customers in the long run. It’s not healthy for us dealers in the long run.”

A new report from Retail TouchPoints, citing Forrester’s 2024 U.S. CX Index, reveals that customer service is at its worst level since 2016. Despite access to advanced tech, only 3% of brands are truly customer-focused — and shoppers are losing patience.
- 70% of customers say it’s hard to find in-store help; 83% of associates say their jobs are too complex.
- Shoppers prioritize speed over flair—19% say quick item location drives return visits.
- Brands like Tractor Supply and Dick’s use “store mode” apps to show real-time inventory and item locations.
- GenAI is gaining traction: 84% of customer service managers plan to deploy AI agents in 2025, up from 42% in 2023.
- “With greater customer experiences comes greater responsibility,” says CI&T’s Melissa Minkow.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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