US car buyers are rushing to purchase new vehicles ahead of President Donald Trump’s tariffs on imported cars, which take effect on Wednesday. The 25% duty on passenger vehicles and car parts is expected to raise prices by nearly 9%, according to JPMorgan estimates.
Some consumers are trying to avoid the higher costs, while others may see it as an opportunity to buy a new car before prices increase. Dealers like John Connelly, who owns an Acura dealership in Columbus, Ohio, have reported increased demand for cars ahead of the deadline.
Connelly notes that many customers are worried about the tariffs’ impact on their budget. “When you’re buying a $60,000 car, that really adds up,” he said. The auto industry may also see changes as companies consider selling goods made outside the US in other countries due to the tariffs.
Analysts expect prices for used cars to rise under the tariff, as inventories become limited. Connelly attributes the increased demand to consumers who had previously saved money during the pandemic but now have less disposable income.
As a result of the tariffs, many car buyers are opting to purchase new vehicles before the deadline to avoid higher costs. The impact of the tariffs on the auto industry and consumers will be closely watched in coming weeks.
Source: https://www.businessinsider.com/car-buyers-trying-get-ahead-of-tariffs-by-buying-now-2025-3