The automobile industry has a strong dislike for uncertainty, especially given the extensive time, often five or six years, required to launch a new car model. This unpredictability is exacerbated by some administrations introducing erratic tariffs that can disrupt global trade relations.
Currently, the US tariff landscape is in constant flux. Certain manufacturers are receiving limited exemptions, often due to their leaders’ willingness to comply with government demands. However, most global auto manufacturers have not been relieved from the 25 percent tariff imposed on vehicles assembled outside the US.
This situation is unprecedented due to both its severity and the rapidity with which these tariffs were enacted. Immediate impacts are already evident, with companies like Audi withholding foreign-made vehicles at ports and Jaguar Land Rover halting shipments to the US.
The full extent of the impact on different manufacturers is still unclear, but one certainty is emerging: potential car buyers are quickly heading to dealerships. For instance, Andrew Neuberger from Atlanta, who works in automotive software, brought forward his car purchase plans because of the tariff situation. Initially content with his BMW X2 M35i, he opted for an early lease on an Audi SQ6 E-tron instead of waiting for BMW’s upcoming EVs.
Data from Cox Automotive indicates a surge in new vehicle sales in March, fueled by strong seasonal trends and the urgency generated by the import tariff news. Sales increased by 17.2 percent compared to late February, and the average inventory of new cars dropped from 91 to 70 days within the month, signaling quickly depleting dealership stocks.
EV sales rose 11.4 percent in the first quarter of 2025, compared to the same period in 2024, despite Tesla experiencing a 13 percent drop in sales. Used car sales also soared, increasing by 12.2 percent over the previous year.
John Osborn from Dallas, who was searching for a specific Jeep Grand Cherokee Trailhawk model, expedited his purchase due to the impending price increases associated with tariffs. He chose a 2021 model in his second-choice color to avoid further delay.
In California, Steve Martegani, who was considering adding a Mazda MX-5 Miata to his collection, advanced his purchase timeline upon learning about the tariffs. With advice from his Mazda dealer in Elk Grove, he placed a deposit on a car currently at port rather than ordering one from Japan.
Similar trends are being reported across dealerships, including the Valenti Auto Group in Connecticut. General Manager Alan Valenti noted increased buyer motivation, reflecting a broader shift in market dynamics.
This evolving scenario sees what was once a buyer’s market shifting towards favoring dealers. Tom McParland, owner of Automatch Consulting, notes a significant demand increase following the tariff announcement, with many consumers rushing to secure deals.
While some dealers are acting responsibly by moving inventory at fair prices, others are raising prices, even on pre-tariff imports. Although Ford and Stellantis offer employee pricing to all, discounts are rapidly diminishing.
McParland advises car buyers to act on fair deals without waiting for potentially better offers and recommends flexibility, as those with specific demands may incur higher costs. For those who ordered overseas, it’s essential to confirm the locked-in price with the dealer to avoid unexpected surprises.