🚗 Tariffs & Car Prices: What You Need to Know

1. Tariffs Raise the Cost of Imported Cars & Parts

Many cars sold in the U.S. — even those from American brands — rely heavily on imported parts. Engines, transmissions, electronics, tires, and steel components often come from overseas suppliers. When tariffs hit those imported parts, automakers face higher costs to build the same vehicle.

✅ Example: If steel from Europe or Asia gets hit with a 25% tariff, the cost of every vehicle using that steel rises.

✅ Electronics & Sensors: Modern vehicles are packed with imported tech — cameras, sensors, chips — much of which comes from Asia. Tariffs could add hundreds to thousands of dollars per vehicle in raw costs.

✅ Fully Imported Vehicles: Popular models built entirely overseas (like certain Toyotas, BMWs, or Hondas) could see sticker prices jump 10% or more almost overnight if tariffs expand.

2. Automakers Pass the Costs to You — The Buyer

Car companies aren’t going to eat these costs — they’ll pass them along to you, the consumer. That means:

🚙 Higher MSRP (sticker prices) on new cars.

🚙 Higher lease payments, since lease prices are tied directly to vehicle value.

🚙 Higher financing costs, because bigger sticker prices = bigger loans.

3. Even Domestic Cars Aren’t Safe

Think you’re safe buying a “Made in America” vehicle? Not so fast.

👉 Over 50% of parts in many U.S.-built vehicles still come from outside the U.S.

👉 If Mexico or Canada get hit with tariffs, that directly raises costs for American-built cars that rely on supply chains across North America.

👉 In fact, vehicles like the Chevy Silverado and Ford F-150 — which depend heavily on Mexican-built parts — could see prices surge.

How will the Canada, Mexico tariffs affect the auto industry? Financial expert weighs in https://www.youtube.com/watch?v=8Q3XPDLXIpk&list=RDNS8Q3XPDLXIpk&start_radio=1

4. Used Car Prices Could Skyrocket Too

When new cars get too expensive, more buyers flood into the used car market, driving up demand and prices for pre-owned vehicles. We saw this in 2018-2019 with the China tariff war, and again during pandemic supply chain issues.

⚠️ Higher tariffs = fewer affordable new cars = used car price inflation.

5. Why Now May Be the Best Time to Buy

Right now, dealerships are sitting on decent inventory, but the moment tariffs go into effect — or even if the threat gets serious enough — manufacturers will raise prices to protect their margins.

✅ Dealers want to move existing inventory before tariff-driven price hikes hit.

✅ Once the tariffs hit, both new and used prices will climb.

✅ If you’re financing, locking in today’s prices also helps you avoid higher loan amounts down the road.

🔥 Bottom Line: Buy Now to Beat Tariff Inflation

If you’ve been thinking about upgrading your vehicle, waiting could cost you thousands — especially if you want a truck, SUV, or imported model.

👉 Get ahead of the tariffs.

👉 Take advantage of current discounts & incentives.

👉 Avoid getting stuck in higher-price, higher-interest-rate territory.

Call or text Rico Glover 910.257.3017 to schedule a VIP assessment on your next vehicle purchase

---------------------------------------------------------------------------------------------------------

New or used vehicles available 910.257.3017