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Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases

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Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases

Ziggy Duchnowski spent Saturday morning car shopping along Northern Boulevard in Queens with two goals in mind.

He wanted to find a new small car for his wife, and he hoped to strike a deal before the new tariffs that President Trump is imposing on imported cars and trucks affect prices.

“The word on the street is prices are going to shoot up now,” said Mr. Duchnowski, 45, a union carpenter who voted for Mr. Trump, holding the hands of his two small children.

The tariffs — 25 percent on vehicles and parts produced outside the United States — will have a broad impact on the North American auto industry. They are supposed to go into effect on April 3 and are sure to raise the prices of new cars and trucks.

They will also force automakers to adjust their North American manufacturing operations and scramble to find ways to cut costs to offset the tariffs. And for now at least, they are spurring some consumers to buy vehicles before sticker prices jump.

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Analysts estimate that the tariffs will significantly increase the prices of new vehicles, adding a few thousand dollars for entry-level models to $10,000 or more for high-end cars and trucks. Higher prices for new vehicles are also likely to nudge used-car prices higher.

Every automaker will feel some kind of impact. General Motors builds a large number of highly profitable pickup trucks and sport utility vehicles in Canada and Mexico. Toyota and Honda make popular S.U.V.s in Canada. Volkswagen assembles the Jetta sedan, Tiguan S.U.V. and other popular models in Mexico.

“Once the tariffs go into effect and people start receiving quotes that represent these 25 percent increases, that’s when it’s going to start to sink in,” said Bill Pacilli, the sales manager at Lynnes Hyundai in Bloomfield, N.J.

Close to half the cars that Hyundai sells in the United States are imported from South Korea, he said. “They’re going to be hit with the tariffs in about a month or two,” Mr. Pacilli said. “Of course we’re concerned. Any effect in pricing is going to affect sales volume.”

While many dealers did not see a noticeable increase in buyers on Saturday, Jeremy Gleason, general manager at McGrath Subaru Evanston in Skokie, Ill., said his dealership had its biggest sales day since it opened in 2021.

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“It’s been nuts,” Mr. Gleason said. “The tariffs have come up a lot and pushed people to move forward quicker.” He added that his dealership typically sells about 15 cars on Saturdays but sold 32 on this one.

Alvaro Duarte, an Ecuadorean immigrant who lives in West New York, N.J., went to Hudson Toyota in Jersey City, N.J., on Saturday to trade in his gas-powered car for an electric model, fearing prices would rise if he waited.

“Tariffs affect everyone,” said Mr. Duarte, 37. In his free time, he said, he often uses his car to earn money on the side as an Amazon Flex delivery driver. “If the prices go up, I need to pay more for my car, and that’s more expensive for me and my family,” he said. “I made the change because with electric cars there is no gasoline and less maintenance.”

Meanwhile, a salesman at Audi Manhattan in New York, Abdul Azeez, said traffic was no brisker than usual, and suggested it was because the people who live in the neighborhood usually have the means to buy new cars whenever they choose.

“Overall, I don’t think dealers in Manhattan are going to be as affected compared to dealers in other states or less busy cities, because even in the good economy, bad economy, there’s always going to be somebody who walks in the door to buy a car,” said Mr. Azeez, 24.

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In Ann Arbor, Mich., on the strip of auto dealerships west of downtown on Jackson Avenue, customer traffic was pretty normal for a Saturday on the last weekend of the month — typically a busy time.

But a Tesla showroom drew a crowd: some 300 to 400 people gathered to protest the political activities of the company’s chief executive, Elon Musk.

Mr. Musk heads the cost-cutting initiative known as the Department of Government Efficiency, which has eliminated thousands of federal jobs and gutted several government agencies, including the Veterans Affairs Department and the Education Department.

Protesters carried signs calling for Mr. Musk’s firing and urged people to sell their Teslas.

“We’ve got to get some basic common sense back in this country,” said Harold Blake, 73, a retiree who drove 30 miles from Dearborn to participate in the protest.

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“It’s so extreme, what’s going on in Washington,” he said. “I’m not taking it lying down.”

Over the course of an hour, no customers crossed the picket line to enter the Tesla showroom.

Protests were taking place at Tesla locations around the world, as part of the so-called Tesla Takedown movement. More than two dozen such demonstrations were scheduled across the United States on Saturday. Others were planned for Europe, Australia and New Zealand.

“I’m terrified for my kids and grandkids for what this world is coming to,” Kathy Sinnes, 67, said while protesting outside a Tesla showroom in Miami and holding a poster that read, “Tesla greed we will not heed.”

It remains unclear how soon prices on new vehicles will rise. Most automakers have enough tariff-free cars and trucks on dealer lots to last 60 to 90 days.

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Juan Carlos Fagerlund decided not to wait. He was in a Toyota dealership in North Miami, Fla., to add window tinting to a Prius he had bought this month.

Although he had already been thinking about buying a new car, he said, the potential of higher prices prompted him to speed up his shopping, especially because he wanted a Prius. The car is made in Japan and will be subject to a heavy tariff.

The tariff increase “was not entirely the reason why we purchased in March,” Mr. Fagerlund said. “But it was definitely in our minds.”

Adria Pina, 60, a Dominican immigrant and a New Jersey Transit bus driver who lives in Bayonne, N.J., also decided to move quickly. Sitting in the Hudson Toyota dealership in Jersey City minutes after she bought a new car, she said she felt that she had just dodged a tariff pothole.

“My husband said we got lucky that we got a deal right before the tariffs,” Ms. Pina said. “If we didn’t get this done in time, it would have cost us about $10,000 more. That’s a lot of money.”

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Sal Sellers, 57, the general sales manager at Hudson Nissan next door, didn’t seem overly concerned about the looming tariffs, noting that he had been through the pandemic and other serious economic downturns. But that didn’t mean his customers weren’t worried.

“Last week, we had a couple customers walking in saying: ‘You know what, I’m not waiting. I’m going to change my car now before the tariffs hit,’” Mr. Sellers said. “I’d say about 30 percent of my customers said that.”

Outside Chicago, Enzo Costa oversees eight dealerships as director of sales for the family-owned Patrick Dealer Group.

In March, he said, he increased his orders for new cars to top off his inventory before prices rise, and his acquisitions team purchased 30 used vehicles — about three times the usual number.

So far, though, he hadn’t seen a spike in customer traffic. “On a normal Saturday, we set 80 to 100 appointments,” he said. “Today, we have 75.”

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He added that his sales team was urging customers considering new cars to come to the showroom. “Everything in inventory is pre-tariff,” he said. “You don’t have to worry about that now. That’s something that is way down the road.”

At Silver Line Auto Group in Queens, which sells used Jeeps, Cadillacs and Mercedeses, many customers are immigrants or other people who have driver’s licenses but not Social Security numbers. Back in December, Silver Line sold 35 cars, but business had crashed since then, said a salesman, Silver Bautista. The company sold just eight cars this month and recently laid off four employees.

Mr. Bautista said he believed that customers were staying away not because of rising prices but because they felt a need to save money.

“They don’t care about tariffs,” Mr. Bautista said. “People are worried about being deported.”

Robert Chiarito, Ryan Hooper, Verónica Zaragovia, Anusha Bayya and Nate Schweber contributed reporting.

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Ranch lovers can soon travel with a TSA-friendly kit of the popular American dressing

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Ranch lovers can soon travel with a TSA-friendly kit of the popular American dressing

Ranch dressing is having a moment thanks to the World Cup and Kraft is ready to meet it.

The company said Thursday that it is working on a “TSA Compliant Ranch” for those looking to travel with the quintessentially American condiment. The announcement follows the influx of social media videos showing international soccer fans sampling the dressing for the first time.

“Some visitors leave with souvenirs. Others leave with America’s favorite dressing,” Kraft wrote in a caption accompanying an AI image of a TSA-approved clear bag packed with ranch dressing packets posted to social media. The image showed the bag — complete with a luggage tag resembling a ranch dressing bottle — placed in an airport security screening bin along with other travel essentials.

Additional details will be announced later, the company said.

TSA has also leaned into ranch’s apparent newfound popularity among international travelers, providing some helpful tips (and warnings) on social media.

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“If you’re visiting for a very large sporting event & you happen to discover RANCH while you’re here… pls pack it in your CHECKED BAG on your way home,” the agency posted on Instagram Tuesday. It also asked travelers to “avoid chugging your ranch outside security” lines.

“Who knew dip-lomacy could be achieved through addressing the obvious: ranch is the king of condiments,” TSA wrote in the caption accompanying its carousel of humorous ranch-related quips. “If you’re traveling within the U.S., make sure to keep your carry-on sauces to 3.4 oz or less and place any larger containers in your checked bags.”

“Some heroes wear capes. Others bring ranch,” it added.

According to 1987 Times reports, ranch dressing was invented by Steve Henson, who opened the Hidden Valley Guest Ranch in Santa Barbara in the mid-1950s with his wife, Gayle. The unnamed condiment originally mixed herbs and spices with buttermilk and mayonnaise and its popularity with guests led to it being jarred so they could take some home. The more travel-friendly powdered form followed.

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Landmark downtown apartment tower faces foreclosure

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Landmark downtown apartment tower faces foreclosure

A landmarked downtown Los Angeles apartment building designed by famed Los Angeles architect John Parkinson is on the market as its owners face foreclosure.

Residences in the Metropolitan, a 10-story tower built in 1913, are nearly filled with tenants but its ground floor retail spaces on Broadway and 5th Street are unoccupied, as are other street-level stores in downtown’s Historic Core.

The historic building was once considered one of the best in the city and is owned by the Fallas family, which operated a chain of value-priced clothing stores based in Gardena including one called Fallas Paredes in the Metropolitan.

Fallas-Paredes at 449 S. Broadway, Los Angeles, CA 90013.

(Google Maps)

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Around 2011, Michael Fallas, who once worked in family’s downtown store as a stock boy, converted the upstairs floors from offices to apartments while continuing to operate Fallas Paredes. The store closed more than five years ago in the wake of a 2018 filing by its parent company for Chapter 11 bankruptcy protection.

Earlier this month in state Superior Court, a special servicer representing Fallas’ lender asked for a judicial foreclosure of the property, alleging that Fallas had stopped making payments on a $32 million loan dating to 2017. After leasing the property for years, Fallas bought the building in the 1990s.

Fallas didn’t respond to requests for comment.

The location of the Metropolitan where the buildings stands was hailed in a Times story in 1912, saying “it is regarded by many realty men as the most valuable piece of real estate in Los Angeles.”

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The building today is recognized as a city historic-cultural monument because “Broadway became the commercial center of the Southland, a title it retained until well after World War II,” with its development, the city said. One of the architects who designed the Metropolitan in the Beaux-Arts style was John Parkinson, who is credited with designing such well-known local structures as City Hall, the Los Angeles Memorial Coliseum and Union Station.

Notable tenants in the Metropolitan have included the Los Angeles Public Library, Owl Drug Co., variety store J.J. Newberry and real estate company Janns Investment Co., which sold the land where UCLA is built and developed Westwood Village, among other Los Angeles neighborhoods.

In recent years, the buildings around the Metropolitan have struggled to keep retail tenants after a spurt of residential conversions of historic buildings starting in the early 2000s brought commerce to the neighborhood. Many downtown businesses have struggled since the pandemic reduced occupancy in offices downtown and reduced the flow of visitors.

“The lack of bodies on the street is generally hurting downtown, and that’s one of the reasons that has building has problems,” said downtown real estate broker Hal Bastian, who lives in the Historic Core.

There are close to 1,000 residential units in historic buildings at the intersection of Broadway and 5th Street, Bastian said, but all the ground floor stores are closed. Drug stores there suffered substantial losses from shoplifting he said, and now, “our challenge on Broadway is leasing.”

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The 88 apartments in the Metropolitan are 91% rented, according to a listing for the property by the Zacuto Group, which also touts its roof deck with pool, fitness center and barbecue grills. No sale price is set.

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January 2025 wildfire victims seek tougher penalties against State Farm over claims handling

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January 2025 wildfire victims seek tougher penalties against State Farm over claims handling

A fire survivors’ group announced Thursday it was seeking tougher penalties against State Farm over its handling of January 2025 wildfire claims.

The Every Fire Survivor’s Network said it was petitioning to join a state enforcement action announced this year against the company to make sure the case results in meaningful changes at California’s largest home insurer.

“We’re seeking a systematic review of all their claims and penalties calibrated to the actual scale of the harm — and we’re seeking the payouts that families are owed,” said Joy Chen, executive director of the group, at a Pacific Palisades news conference joined by victims of the fires.

The Department of Insurance in May filed an administrative action against State Farm General — the subsidiary of the giant Bloomington, Ill., insurer that handles California home insurance — after completing a “market conduct” exam.

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The Jan. 7, 2025, fire damaged or destroyed more than 18,000 structures and killed 31 people.

State Farm has received more January 2025 claims than any other insurer — more than 13,700 auto and homeowners claims as of May 4, with payouts totaling $5.7 billion, according to the company.

The market conduct exam looked at 220 sample claims filed by the victims and found 398 violations of state law in about half of them.

Among other alleged violations, it found that the company failed in numerous cases to pursue a “thorough, fair and objective investigation” into claims, failed to come to “prompt, fair, and equitable settlements” and made settlement offers that were “unreasonably low.”

In announcing the action, Insurance Commissioner Ricardo Lara called the company’s claims handling “unacceptable” and said his department was taking “decisive action to hold them accountable.”

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The state is seeking a “cease and desist” order to stop the insurer from engaging in unfair or deceptive practices.

It also has threatened to suspend State Farm’s license over the alleged violations, which each carry a penalty of up to $5,000 — or twice that figure if found to be willful. That could amount to a penalty of $2 million or more.

The threat to actually suspend State Farm’s license and its authority to write policies has been viewed skeptically by some, given its roughly 20% market share of the state’s home insurance market.

The company, which had an opportunity to include its responses in the exam report, denied fault in some cases and admitted fault in others. It often blamed problems on individual adjusters and denied systemic issues with its claims handling.

The petition filed by the wildfire survivor’s group criticizes the sample size of the market conduct exam as too small to capture all the alleged deficiencies in State Farm’s claims handling, which it claims are a “general business practice” of the company.

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The group is seeking to conduct discovery, cross examine witnesses, present testimony from fire victims and bring more that 1,600 firsthand policyholder statements regarding State Farm’s practices into evidence, according to the petition.

It also wants State Farm to reopen cases in which claimants were paid too little, and it is seeking to participate in settlement discussions in order to increase any penalty State Farm would pay.

It calculated that a $2-million penalty would amount to a minute fraction of the assets of the State Farm Group.

“I submit to you that doesn’t defer bad conduct, it just allows you to continue to do it,” said Michelle Meyers, an attorney for Every Fire Survivor’s Network, at the news conference.

Consumer Watchdog, which has been a harsh critic of State Farm, also is providing legal support for victims’ effort.

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Sevag Sarkissian, a spokesperson for State Farm, said the company was aware of the petition.

“We recognize that many wildfire survivors, including those that are State Farm General policyholders, continue to face difficult recovery challenges,” he said. “Our focus remains on helping customers recover.”

Michael Soller, a spokesperson for Lara, said the department is “acting with urgency to assist wildfire survivors in their ongoing recovery by investigating formal complaints filed by survivors and conducting the expedited market conduct exam that led to this enforcement action.”

He added that the department’s position is the state’s Administrative Procedure Act does not contemplate the commissioner or department staff authorizing intervention requests in the case.

He said that would be a hearing officer’s or administrative law judge’s decision when one is assigned to the case.

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Meyers acknowledged the request was novel but said her reading of the law is that Lara can make the decision because no judge is yet assigned.

In response to the criticism, State Farm pledged earlier this year to improve its claims handling, including by providing single points of contact and improved communication so there are “fewer handoffs, fewer repeated explanations, and seamless support.”

It also named a new vice president of customer relations for State Farm General.

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