Bay Area car buyers close deals amid looming Trump tariffs on imported vehicles
Bay Area car dealerships are expected to be busy this weekend as buyers seek to close deals, as the Trump administration's looming tariffs on imported vehicles may soon take effect, possibly as early as next week.
Prices on new cars could soon see a significant increase, with many buyers worried about the impact. The Trump administration announced that starting next week, the U.S. will impose a 25% tariff on imported passenger cars and light trucks. This move, according to the administration, aims to bolster U.S. manufacturing jobs.
However, some car shoppers at a Bay Area dealership on Friday are concerned that the additional tax will push the price of new cars out of their reach.
"I needed one and thought I probably should get it done now," said Adele, a car shopper who declined to provide her last name. "I probably could have waited another few months if I had to. And so, I didn't want to take the chance."
The 25% tariffs on vehicles imported into the United States are expected to go into effect on April 3rd. Additionally, parts shipped from foreign countries will also be subject to a 25% import tax, which is set to take effect "no later than May 3rd."
Dealerships are bracing for a surge in business as the tariffs loom.
"We anticipate a very busy weekend. We looked at today, and we had 27 appointments scheduled for just today," said Nate Myler, Sales Director at Toyota Marin in San Rafael. "That's about a 50% spike."
Although Toyota Marin has a lot of inventory, Myler doesn't expect it to last long due to the number of buyers eager to avoid the tariffs.
"The average price of a new transaction we go through now is close to $35,000," he noted.
Keith Ural, the Sales Manager at Toyota Marin, emphasized that while the dealership doesn't engage in politics, shoppers should be aware of the ripple effect of tariffs on car-related costs.
"If anybody here is thinking about purchasing a vehicle service agreement, it's a good time to do that because the parts on that, the cost of labor and parts is going to go up with that also," Ural said.
Auto industry experts said the tariffs will affect every make and model. Even American companies like Ford and General Motors have cars and parts imported from Mexico and Canada, according to the National Highway Traffic Safety Administration.
Many shoppers who had initially planned to take their time are now rushing to make a purchase before the tariffs go into effect.
"With taxes and everything, it came to ($43,000). So we knew that we couldn't go that high. So there's no way I could've afforded that in a month from now if that 25% tariff took place," said Adele.
The tariff would have added roughly $10,000 to her car's price.
After six months of research and online shopping, Adele's car buying journey came to an end at Toyota Marin this week. She got her keys and drove off the lot in her new Camry on Friday.
"It feels good actually. It's a relief," she said.
While the tariffs are set to take effect on April 3rd, it remains uncertain if the Trump administration will delay their implementation.
As the situation continues to evolve, many dealerships said they will have a clearer picture of how to respond next week.