Page 8 - BusinessWest August 18, 2025

Coming into Focus
A Fuzzy Picture on Tariffs Becomes Sharper, But Questions Linger
BY GEORGE O’BRIEN
[email protected]
Carlo Bonavita says tariffs will likely
prompt some wine drinkers to switch to
domestic products.
Staff Photo
Clarity.
Ever since tariffs became a main
thrust of the Trump administration’s
economic policy — that would be day 1 —
that’s what business owners and managers
have been calling, if not begging, for.
They still don’t have as much as they
want, but they now have a lot more than
they did 60 or even 30 days ago.
That’s especially true in the auto indus-
try, where trade deals inked with Japan,
South Korea, and the EU lock in 15% tar-
iffs on a large list of foreign imports. That
translates into a roughly $2,000 increase on
an average-priced vehicle, which is now in
the mid-40s, said Ben Sullivan, chief operat-
ing officer for the Balise Auto Group.
And that number must be put into per-
spective, he went on, noting that, with the
return of incentives such as 0% financing
and attractive lease rates, the consumer’s
monthly payment — which is what most
focus on — may not rise much higher than
it is now.
“At the same time as those price
increases are coming, most manufacturers
have increased production, and when they
increase production, they want to sell a
bunch of cars, and when they want to sell a
bunch of cars, they put incentives on them,”
said Sullivan, who cited the case of a co-
worker with a truck coming off lease. She’s
getting into a new one and shaving $100 off
the monthly payment at the same time.
That’s an indication of how unattract-
ive the incentives were in the years after
COVID, and how much better they are now,
said Sullivan, adding quickly that, while
there’s still a good amount of dust to settle,
especially with regard to tariffs imposed on
Canada and Mexico and the cars and parts
made in those countries, there is a sense of
normalcy returning to this sector (more on
that later).
The same can generally be said for
Carlo Bonavita’s business, Springfield Wine
Exchange, where clarity is also a technical
term.
Bonavita’s shelves are loaded with
imported wines, many of which will now be
subjected to at least 15% tariffs. This will
add a few dollars to the average-priced bot-
tle, which might be enough to sway some
consumers to switch to domestic labels,
something he’s been promoting for some
time now, especially with the prices from
“At the same
time as those
price increases
are coming, most
manufacturers
have increased
production, and
when they increase
production, they
want to sell a
bunch of cars, and
when they want
to sell a bunch
of cars, they put
incentives on
them.”
THE LIFE AND TIMES
James Garvey James Garvey
A C E L E B R AT I O N M E M O R I E S A C E L E B R AT I O N O F O F O U R O U R B E S T B E S T M E M O R I E S
Thursday, Thursday,
Hosted by Hosted by
September 25, 2025 September 25, 2025
John, Sue, and
5:00 - 7: 00 5:00 - 7: 00 PM PM
Quinn Garvey and
benefiting The Gray House
Westfield River Brewing Co., Westfield River Brewing Co.,
707 College Highway
Remarks by Remarks by
Southwick, MA
Attorney Scott Foster,
Jesse Baker and
Darby O’Brien
Donation requested - Donation requested - $35 (100% of ticket sales goes to The Gray House)
a
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AUGUST 18, 2025
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