JACKSONVILLE, Fla. – A 25% tariff on imported passenger vehicles, light trucks, and some auto parts goes into effect this week, raising concerns for consumers. Close to 50% of US light-vehicle sales could be directly impacted by tariffs on vehicle imports, based on S&P Global Mobility estimates.
“The last five days have just been unbelievably busy,” said Jack Hanania Jr. from Hanania dealerships on Blanding, where shipments of cars are arriving less than 48 hours before the tariffs take effect.
Hanania said it’s been like Black Friday every day.
“This weekend was one of the busiest weekends we’ve had since before COVID. Trade values are going sky high because used car prices are increasing. We’ve seen a plethora of business with people trying to buy before the tariffs take effect.”
The 25% tariff targets automakers that do not manufacture cars or parts in the U.S. Analysts at Edmunds expect prices to rise and incentives and discounts to diminish as a result.
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With increased costs throughout the supply chain, these expenses could be passed on to consumers unless manufacturers find innovative ways to absorb or offset them, potentially affecting their profit margins.
“We took a precautionary measure and ordered probably six months’ supply of cars because we knew this could be a possibility. So we have vehicles here, and nothing’s affected, and anything incoming that we have in the pipeline is not affected at all,” Hanania explained.
As new car prices rise, the demand for used cars increases, which could enhance trade-in values for those in the market.
“Before any type of tariffs take effect, it’s really been a sweet spot to purchase,” Hanania added.
For some buyers, the decision to purchase isn’t solely about the price. When asked, “What would it take for you to buy a car today?” one buyer said, “My wife to say, ‘I can get it.‘”
Another consequence of the tariffs is the potential increase in repair and ownership costs, as many vehicle parts are sourced globally.
Automakers that import more vehicles and auto parts, such as Toyota, Hyundai, and Volvo, will be impacted the most. This could lead to higher insurance premiums, as any accidents involving new parts may incur increased costs.