25% Tariff Official Thread

[Brian Michael West]

On March 26, 2025, President Donald Trump announced a 25% tariff on all imported automobiles and light trucks, effective April 2. The goal is to encourage domestic manufacturing by making it more expensive to import vehicles, potentially benefiting American automakers. The tariffs will also apply to auto parts, and vehicles from Canada and Mexico will be taxed based on their non-U.S. content. The administration estimates that this could generate $100 billion annually, with the revenue aimed at reducing national debt. While the United Auto Workers union supports the move, critics argue that it could lead to higher vehicle prices and potential trade retaliation.

What does this mean for dealerships?​

• How do you think a 25% tariff on imported cars and trucks will impact dealership pricing and sales strategies? Will it push more customers toward domestically produced vehicles, or will it simply drive up costs across the board?
• If these tariffs stick, how should dealerships prepare? Should they focus on stocking more American-made inventory, adjust F&I strategies, or find other ways to offset potential customer resistance to higher prices?

Let’s hear your thoughts. How do you see this playing out on the showroom floor?

 

[Alex Snyder]

You beat me to this thread by minutes, Brian!

Here's the dilly on the March 12th tariffs:

• Steel and aluminum imports: 25% tariff.
• All Chinese imports: 20% tariff.

Hearing this will increase vehicle pricing $300 to $500 per car.

The next round hits April 2nd:

• Mexican and Candian imports: 25% tariff.
• Reciprocal tariffs back at us: 25% tariff.

Could be another increase of $3,000 per car.

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

Aside from cost increases, this may lead to layoffs at manufacturing facilities. Don't be surprised by fewer new car incentives and less vehicle availability. It could be a short-term blessing for dealers who get to charge MSRP+.

Some companies may go out of business if adoptions are not made quickly. When new cars were hard to get, advertising companies struggled. It is possible that an OEM or two declares bankruptcy.

 

[Brian Michael West]

You beat me to this thread by minutes, Brian!

Here's the dilly on the March 12th tariffs:

• Steel and aluminum imports: 25% tariff.
• All Chinese imports: 20% tariff.

Hearing this will increase vehicle pricing $300 to $500 per car.

The next round hits April 2nd:

• Mexican and Candian imports: 25% tariff.
• Reciprocal tariffs back at us: 25% tariff.

Could be another increase of $3,000 per car.

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

Aside from cost increases, this may lead to layoffs at manufacturing facilities. Don't be surprised by fewer new car incentives and less vehicle availability. It could be a short-term blessing for dealers who get to charge MSRP+.

Some companies may go out of business if adoptions are not made quickly. When new cars were hard to get, advertising companies struggled. It is possible that an OEM or two declares bankruptcy.

Stellantis is going to struggle. (more)

 

[BillVaughnAlWestNissan]

I was going to post this in my thread, but it fits better here. I'm going to try to take this as an opportunity to gain market share if other Nissan dealers start raising prices.

 

[jscole86]

It could be a short-term blessing for dealers who get to charge MSRP

With the amount of capital that's needed to invest and run these stores, dealerships should be entitled to make the margins at MSRP.

 

[Marc Lavoie]

We realized this was stalling customers at sales, waiting for the next moves. We created a quick auto tariffs cheat sheet to help sales teams get around it

 

[jon.berna]

I think the biggest challenge is how unpredictable this all is so everyone is limited to thinking in the near-term

 

[Richard_Lloyd]

I was going to post this in my thread, but it fits better here. I'm going to try to take this as an opportunity to gain market share if other Nissan dealers start raising prices.

Read that Nissan is going to be decreasing on Rogue + Pathfinder. True? Zig when others zag, would be interesting.

I was looking for more specifics on this and saw ex-dealer (now Senator) Bernie Moreno R-OH detail the plans below, hope it's helpful:

• Category 1 Vehicle:
  • Final assembly in US even with CA/MX parts content = No Tariff
• Category 2 Vehicle:
  • Final assembly in CA/MX = 25% Tariff on non-US parts content
• Category 3 Vehicle:
  • Final assembly in US with non-CA/MX critical parts (i.e. engine, trans) = 25% Tariff on those critial parts only
• Category 4 Vehicle:
  • Foreign final assembly with no US parts content = 25% Tariff on the whole vehicle

 

[BillVaughnAlWestNissan]

Read that Nissan is going to be decreasing on Rogue + Pathfinder. True? Zig when others zag, would be interesting.

I was looking for more specifics on this and saw ex-dealer (now Senator) Bernie Moreno R-OH detail the plans below, hope it's helpful:

• Category 1 Vehicle:
  • Final assembly in US even with CA/MX parts content = No Tariff
• Category 2 Vehicle:
  • Final assembly in CA/MX = 25% Tariff on non-US parts content
• Category 3 Vehicle:
  • Final assembly in US with non-CA/MX critical parts (i.e. engine, trans) = 25% Tariff on those critial parts only
• Category 4 Vehicle:
  • Foreign final assembly with no US parts content = 25% Tariff on the whole vehicle

Facts. I had just said in my morning meeting with our staff that this is what Nissan should do. Do the opposite of what everyone else does.

 

[Alex Snyder]

Smart move for Nissan. And if you’re a Jeep or RAM dealer you should advertise your entire inventory as “Pre-tariff vehicles ready to go!” …in September

Okay, funny - not funny.