JOHN: THIS MORNING, PRESIDENT TRUMP SAID FOR SOME TO MAKE DO WITH LESS.

HE MODERATOR ASKED ABOUT IF PRICES ON CHILDREN'S TOYS WILL GO UP.

>> I DO NOT THINK AN 11-YEAR-OLD GIRL NEEDS TO HAVE $30.

I THINK THEY CAN HAVE THREE OR FOUR.

HUNDREDS OF BILLIONS OF DOLLARS WITH CHINA.

>> WHEN YOU SAY THREE DOLLARS, ARE YOU SAYING AMERICANS WILL SEE EMPTY STORE SHELVES?

>> I AM NOT SAYING THAT.

JOHN: PRICES ON NEW AND USED CARS ARE LIKELY TO GO UP BECAUSE OF THE TARIFFS ON IMPORTANT AUTO PARTS.

THE EXECUTIVE ANALYST.

THE TARIFF WILL AFFECT PARTS ON CARS MADE IN THE UNITED STATES USING COMPONENTS FROM OTHER COUNTRIES.

IS IT POSSIBLE TO SAY HOW MUCH AND HOW SOON PRICES WILL INCREASE?

>> WE HAVE HEARD MOST AUTOMAKERS WILL HOLD THE SUGGESTED RETAIL PRICE FOR NOW.

WE HAVE HEARD SOME WILL WAIT UNTIL JUNE FOR PRICING.

SOME MAY START ADJUST PRICING THIS MAY.

WE ARE SEEING MORE OF THE PRICING DYNAMIC PLAY OUT BECAUSE OF SUPPLY AND DEMAND.

EVERY AUTOMAKER IS GOING TO HAVE TO FIND A WAY TO AFFORD THESE TARIFFS.

WE DO ANTICIPATE NEW AND USED VEHICLES GOING UP.

JOHN: THE PRESIDENT SEES THE TARIFFS AS AN INCENTIVE TO GET U.S. CARMAKERS TO BRING THE APPLY CHAIN BACK TO THE UNITED STATES.

HOW QUICKLY CAN THAT HAPPEN AND HOW COSTLY COULD IT BE?

>> GOOD QUESTION.

WE KNOW AT A MINIMUM IT WOULD BE 18 TO 24 MONTHS IF YOU ARE TALKING ABOUT BUILDING NEW FACILITY AND PRODUCTION PLANTS - - FACILITIES AND PRODUCTION PLANTS.

WE BELIEVE ASSEMBLY MIGHT BE EASIER WHICH WILL EASE THE TARIFF UNDER VEHICLES CROSSING THE BORDER.

PARTS ARE A DIFFERENT STORY.

MANUFACTURERS HAVE BEEN SPENDING A LOT BUILDING MORE FACILITIES IN THE U.S. JOHN: THE EFFECT ON CONSUMERS, THIS IS NOT JUST ABOUT THE FINISHED PRODUCT.

>> ABSOLUTELY.

WHEN WE ARE TALKING ABOUT THE 25% ON A VEHICLE COMING OVER THE BORDER, THAT IS JUST A NEW VEHICLE.

WE KNOW THE MAJORITY OF CONSUMERS ARE LOOKING IN THE USED MARKET.

IF YOU ARE OWNING -- IF YOU CANNOT AFFORD THE USED CARS, YOU ARE TRYING TO REPAIR YOUR VEHICLE, GET INSURANCE ON THOSE VEHICLES, MAINTENANCE AND REPAIR ARE BOUND TO BE A UNIVERSAL CHALLENGE FOR ALL CUSTOMERS.

NOT JUST INDIVIDUALS LOOKING FOR NEW VEHICLES.

THE PARTS CAME INTO EFFECT YESTERDAY AND THEY WILL BE TARIFFED AT THE 25%.

THAT WILL HURT ALL CONSUMERS ACROSS THE BOARD, THOSE LOOKING FOR NEW CARS AND THOSE NEEDING TO REPAIR OLDER CARS.

JOHN: DOES IT GO BEYOND CONSUMERS?

WILL DEALERS GET SQUEEZED?

>> YES.

EVERY STEP OF THE WAY, ALL OF THOSE SUPPLIERS HELPING TO BUILD THE VEHICLES, A LOT OF THOSE ARE SMALL TO MIDSIZED BUSINESS IS THAT MIGHT BE BUILDING ONE BOLT OR NOT THAT GOES INTO THE VEHICLE, OR IF THE VEHICLE IS PULLING THE VEHICLE ONTO THEIR LOT PAYING MANUFACTURERS FOR THAT AND CHARGING CUSTOMERS TO TAKE THAT CAR.

OHN: WHAT ADVICE WOULD YOU GIVE SOMEONE LOOKING TO BUY A CAR?

>> WE DO HAVE LOTS OF CHOICE.

PRESIDENT TRUMP WAS SAYING MAYBE WE ONLY NEED THREE DOLLARS INSTEAD OF 30.

MY ADVICE WOULD BE TO BE OPEN-MINDED ABOUT WHICH VEHICLE YOU ARE LOOKING AT.

THERE ARE A LOT OF DIFFERENT MANUFACTURERS.

EVERYONE IS IMPACTED BY THIS DIFFERENTLY.

IT DEPENDS ON HOW MUCH THE TARIFFS ARE GOING TO COST.

IF YOU COULD FIT IN A SUB COMPACT SUV, MAKE SURE YOU ARE LOOKING AT BOTH VARIETIES.

IF YOU TYPICALLY SHOP ONE BRAND, BE OPEN TO ANOTHER.

DO YOUR SHOPPING ONLINE AND USE RESOURCES TO SEARCH AND RESEARCH VEHICLES AND YOUR DEALER, THEY ARE THE BEST RESOURCE FOR KNOWING WHAT IS AVAILABLE ON THE GROUND AND HOW THEY CAN GET YOU INTO A VEHICLE.

JOHN: THANK