The Impact Of Tariffs On The Auto Industry
The information provided on this page is accurate as of April 4, 2025. Any legal or regulatory changes after this date are not reflected here.
In April of 2025, the Trump administration’s car tariffs went into effect, placing a 25% tax on any vehicles or car parts imported into the United States of America. For comparison, there is currently a 10% EU tariff on U.S. cars, so a 25% import tax on models coming into America will cause a significant shift in global dynamics and an inescapable price increase for car buyers.
As a popular pre-owned dealership in Phoenix, Bill Luke Santan is closely monitoring how tariffs on cars and auto parts will affect pricing for our customers. Will the tariffs stay? Be paused? Unpaused? This guide examines the current volatile situation.
Will the 25% Auto Tariffs Impact Used Cars?
Right off the bat, new cars are expected to become more expensive for buyers in the U.S. due to the 25% import tax. Therefore, many drivers and families will likely opt for used models, potentially causing a price increase for all types of vehicles as an indirect result of the Trump tariff. Cars are not just a luxury for most Americans but a necessity for work and life, which is why our dealership is doing what we can to maintain stable prices at this turbulent juncture.
Whether you’re aiming to buy a new SUV or electric car, tariff-informed prices may become the norm until the economy stabilizes or the tax is altered. For now, the best we can do is stay mindful of the current market and seek out options that fit within your budget.
Will American-Made Cars Be Impacted by the U.S. Auto Tariffs?
Many, if not all, American auto brands source their parts from foreign manufacturing plants. Even cars largely assembled in the United States rely on components from all over the globe. A considerable amount of Americans drive foreign vehicles, too, such as models from the Japan-based Toyota Motor Company. To provide one example, the impact of the 25% tariffs on Japanese cars’ pricing is expected to increase the cost of new Toyota cars by thousands of dollars.
Even U.S.-based automakers, such as Chevrolet and Ford, will face a major fallout from the automotive tariffs. If you can’t wait for the unknown time when the market might stabilize before buying your next car, the smartest thing you can do now is to find a dependable local dealership, such as Bill Luke Santan. and consult with an automotive specialist on the best approach.
Trust Bill Luke Santan for Affordable Prices on Quality Pre-Owned Cars
While no dealership will be fully immune to the tariffs on foreign cars, many are already considering ways to maintain stable, affordable prices. Bill Luke Santan has been selling cars since 1927 – we are almost as old as the automotive industry itself! Despite massive global shifts over the last 100 years, we have not only survived but also thrived by delivering fair prices for our valued customers. Plus, as a dealership that only stocks certified pre-owned and used cars for sale, we will not be as dramatically affected by the tariffs.
We invite you to reach out to our finance center with questions or concerns about car prices, tariffs, and more. Bill Luke Santan is here to support you.
Frequently Asked Questions
Will car tariffs make cars more expensive for buyers?
Yes, unfortunately for businesses and consumers, a 25% tariff will inevitably raise the price of cars. New vehicles will be impacted first, but even pre-owned models could become more costly due to the tariffs. Those in the market for their next daily driver should be mindful of these changes and keep an eye on the shifting economic landscape before making a decision to buy or lease.
Do car tariffs apply to both new and used vehicles?
While car tariffs are more likely to impact the cost of new vehicles upfront, there will be a ripple effect throughout the entire auto industry. Eventually, the demand for pre-owned models in lieu of costlier new ones may cause an inflation in price. If you are seeking a used car, we recommend finding a reliable local dealership, such as Bill Luke Santan, that still aims to provide great deals.
Can tariffs affect the availability of certain car models?
When tariffs go up, vehicle availability is likely to go down, especially if foreign manufacturers can’t afford the tax. Automakers with many factory locations tend to import parts across multiple borders, relying on a stable worldwide economy to maintain their operations. This may be a good time to consider the benefits of buying a pre-owned vehicle instead of that brand-new release you’ve been eyeing!
