Mississippi auto industry, small businesses brace for tariff disruptions

Automobile sales are a nearly $9 billion dollar industry in Mississippi, and industry leaders say the United States' 25% tariff on foreign vehicles and parts is going to impact both buyers and dealers. 

Marty Milstead, president of the Mississippi Automobile Dealers Association, says Mississippians can expect to pay between two to twelve thousand dollars more for a new vehicle. That is, if their local dealer has one to sell them.

“If you're selling a foreign vehicle and some of the suppliers are cutting back and you don't have the vehicles to sell, it's a big concern,” Milstead said. 

Milstead says used vehicle sales could keep dealers afloat in that situation, but increased demand is expected to increase prices and reduce supply for them as well.

Other import-dependent small businesses in Mississippi are more isolated from tariff-related price increases for now. Nearly all the parts that make up the bikes sold in Jackson-based shop Indian Cycle come from Asian countries. But sales mechanic David Lytton says their suppliers spent the final months of 2024 stockpiling products to get ahead of tariff increases.  

“Because our suppliers brought in so much stuff initially, none of that higher priced products have hit retail stores yet,” Lytton said. “So, we could be somewhat insulated for a little while to price increases.”

Economists expect the overall impact of Trump's tariff policy to be more visible by the middle of the year.