Tariff Reactions, Tax Deduction for Auto Loan Interest?, Fisker’s Second Life

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Episode #1003: Dealers and analysts react to President Trump’s tariff order, as the administration considers a tax deduction for auto loan interest paid. Plus, Fisker Oceans have found new life as a rideshare fleet in NYC.

Show Notes with links:

• Trump’s sweeping tariff order is shaking the auto world. The new 25% levy hits nearly all foreign-built vehicles and key components.
  • Analysts predict $4K–$10K price hikes, and Cox Automotive warns that 30% of U.S. vehicle production could be disrupted within a week. 
  • GM stock fell 9%, hit hardest due to its reliance on Mexico and South Korea, Ford and Stellantis were down around 2%
  • Ferrari responded by is raising prices by 10%, up to $350K on some models. 
  • Even Tesla isn’t safe—Elon called the impact “significant” due to global parts sourcing.
  • Michael Wood, GM of JLR Virginia Beach on LinkedIn “This will inadvertently heavily impact a brand that never had jobs here in the first place. The outcome could be disastrous for those working at these stores. Volumes go down, staffs are reduced and displaced.”
  • Rob Malanowski, Internet Director at Ancira Nissan said on LinkedIn “If you’re a car shopper, you will get to choose between: paying more for a non-US built vehicle, paying more for a US built vehicle, deciding you don’t really need a new car right now. Bet we’ll see a ton of people in group 3.”

• President Trump has proposed a tax deduction for interest paid on auto loans—but only for vehicles made in America. The idea, announced alongside 25% tariffs on imported vehicles, has drawn mixed reactions from dealers and analysts alike.
  • Dealers are split—some say it could help consumers, while others doubt its feasibility.
  • Analysts say the deduction could save buyers around $20 a month, but tariffs could add $60–$90 to payments.
  • Used car prices could rise 9-12% due to increased demand for domestic models.
  • The White House and Speaker Johnson’s office have yet to confirm details, including whether the deduction applies to standard tax filers.
  • “I think it’s Trump’s way of trying to regulate interest rates,” said Ford dealer Nick Anderson, calling it a “pipe dream.”
  • Trump argues the policy will “pay for itself” by increasing U.S. auto production.

• What happens to thousands of Fisker Oceans after the company goes bankrupt? In New York City, they’re hitting the streets as Uber and Lyft rides, thanks to a fleet operator with a vision and a Bronx repair shop keeping them roadworthy.
  • American Lease bought 3,000 Fisker Ocean EVs for $42.5M, renting them to rideshare drivers.
  • New York City mandates all Uber & Lyft rides be EV or wheelchair-accessible by 2030.
  • BHP Service Center in the Bronx is now the go-to repair shop for these orphaned EVs
  • Shop owner Ronen (“Roni”) is already stockpiling parts, purchasing wrecked ve

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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