Americans rush to buy cars before 25% auto tariffs hit, prices expected to rise significantly.
From Yahoo Finance: 2025-04-15 11:15:00
President Donald Trump’s new trade policy includes a 25% tariff on imported vehicles and parts, causing a rush in car sales as buyers try to lock in prices before the increase. Industry experts predict thousands of dollars in additional costs for new cars.
A Toyota dealership in California sold 70 cars over the weekend due to the impending tariffs, prompting customers to act quickly. Analysts estimate new car prices could rise by $5,000 to $15,000, depending on the model and brand.
With fears of significant price hikes, experts anticipate a surge in prices for some car models. Beyond sticker shock, automakers are preparing for higher production costs that may lead to layoffs in manufacturing hubs like Michigan, Ontario, and Mexico.
Tariffs are part of a larger strategy by the Trump administration to implement reciprocal trade policies. Supporters believe it will boost federal revenue and domestic production, while critics warn of retaliatory tariffs and economic slowdown.
Market analysts advise potential car buyers to act quickly, as permanent tariffs could lead to higher prices by summer. Used car prices may also rise as buyers pivot from new to used cars due to increased demand.