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Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock

Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock

CNN
Sunday, March 30, 2025 6:41 PM GMT

Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts.

Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts. The growing concern over sticker shock has one cause: President Donald Trump’s 25% tariffs on imported vehicles and parts, which are expected to take effect Thursday. The tariffs will likely impact the cost of cars built in American factories, too, by thousands of dollars. That’s because there is no such thing as an all-American car. All 10.2 million cars built in US factories last year were built with a significant number of imported parts, mainly from Canada and Mexico. After a surge in car-buying, auto sales can expect to drop while new and used car prices increase, and some models will be eliminated, according to Cox Automotives. “We have seen this movie before. During COVID, supply became constrained, costs skyrocketed. While the increase in prices this time may be for completely different reasons, it still stands to reason that the market will not bear another significant increase,” Erin Keating, executive analyst at Cox, said Friday in a note. The cost of a car assembled in North America — such as a Ford, Chrysler, GM or Honda — could increase between $4,000 and $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. The price of an electric vehicle, meanwhile, could cost at least $12,000 more. Miguel Colom, a resident of Bethlehem, Pennsylvania, told CNN that he and his wife plan to buy a Chevy Equinox EV but have felt rushed to make a purchase before May because of the looming tariffs.

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