'Liberation Day' Tariffs? Why Some Americans Are Rushing To Buy A Car Before Trump's 25% Auto Duty Hits

President Donald Trump’s latest trade move is hitting the gas pedal on car sales. With a 25% tariff on imported vehicles and parts set to take effect, buyers are racing to dealerships to lock in prices before they climb. 

Some industry experts say it could add thousands of dollars to the cost of a new car, prompting a last-minute shopping spree.

Don't Miss:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
• Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom

Auto Buyers Rush to Beat the Clock

A Toyota TM dealership in Walnut Creek, California told KKGO-TV selling 70 cars over the weekend, as customers hurried to make a purchase before the tariffs kicked in. The dealership’s general manager, Irina Ellis, said, “Now is the time for these consumers to be out here looking for vehicles before any price changes take effect.” 

According to Marketwatch, Wedbush Securities analyst Dan Ives estimates new car prices could rise by $5,000 and $15,000. However, the exact amount would depend on the model and brand.

Fears of significant price hikes fuel the urgency. Like many auto industry experts, Ives expects prices on some models to surge. Ives told Bloomberg while referencing the tariffs, “It would be a back breaker for the auto industry globally.”  

Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

According to Kelley Blue Book, the average transaction price of a new vehicle in July was $48,401. Reuters reports that auto tariffs would increase car prices by an estimated $2,000 to $4,000 over the next 6 to 12 months, as automakers pass on higher import and production costs to consumers.

Used car prices aren’t safe either—dealers predict they’ll rise as new car inventories shrink. CarEdge co-founder Ray Shefska predicts that tariffs will impact the used car market if they continue for an extended period. If they drive new car prices higher, more buyers will pivot to the used car market. Higher demand for used cars would naturally drive prices higher.

Beyond sticker shock, automakers are bracing for higher production costs, which could impact jobs and supply chains. The manufacturing hubs of Michigan, Ontario and Mexico may see layoffs as companies adjust to the new economic reality.

See Also: Invest in the future of digital engagement: Own a piece of the $100 billion Metaverse for just $500.

These tariffs are part of a larger strategy by the Trump administration to implement reciprocal trade policies, particularly targeting Canada and Mexico. Supporters argue it will boost federal revenue and encourage domestic production, while critics warn it could trigger retaliatory tariffs and slow economic growth.

For those debating whether to buy a car now or wait, market analysts say time is of the essence. Tyson Jominy, vice president of analytics at J.D. Power, told CBS MoneyWatch, “If the tariffs are here, and permanent, by the time we get to summer, we’d expect to see higher prices everywhere.”

Read Next:

• How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!