As the 25% auto tariff on imported cars and light trucks set to kick in on Thursday, car buyers in Southern California are scrambling to make purchases before the prices surge.
Debbie Boyd, a 74-year-old retired attorney from Mar Vista, recently got into a car accident and held out hope that her Chevy Volt could be repaired. However, the car was declared a total loss three days before the tariff went into effect, leaving Boyd with no choice but to buy a new car.
“I’m going to buy what’s on the lot, whatever they have available,” Boyd said, “Obviously I need a car. I just wish it weren’t now.”
Industry experts predict that new cars will cost between 15% to 20% more due to the tariffs, with luxury sedans and SUVs expected to be hit hardest. Car dealerships across Southern California are seeing an increase in demand, with some reporting sales numbers in the double digits for the first time.
“It’s a natural consumer behavior when people see an impending price change,” said Dominick Miserandino, a retail and consumer analyst. “You’re seeing it on a micro scale whenever someone posts online that they found a cheaper place to get eggs.”
The 25% tariff will be applied to imported passenger vehicles and key automobile parts, with the possibility of expanding the duty to include additional parts if necessary. The White House claims the tariffs are aimed at strengthening national security and spurring American jobs.
However, some economists argue that building domestic plants takes years, and regulatory uncertainty may deter companies from shifting their supply chains to the United States.
As the global trade war continues to unfold, businesses across Southern California are bracing for the impact of the auto tariff. While some car dealerships remain hopeful about sales despite potential spikes in prices, others are uncertain about what comes next.
Source: https://www.latimes.com/business/story/2025-04-02/consumers-rush-to-buy-cars-ahead-of-tariffs-trump-dealerships-honda-toyota