How Tariffs Might Affect New Car Buyers

Let’s face it: buying a car isn’t what it used to be. Between rising interest rates, changing technologies, and now… tariffs? It’s enough to make your head spin faster than a test drive in a sports car.

So what do these new tariffs actually mean for you—the average consumer just trying to buy a reliable, affordable car in Southern California? Let’s break it down, without the sticker shock.

Wait—What’s a Tariff, Again?

A tariff is basically a tax placed on goods brought into the country from overseas. Think of it like a toll at the border: if an automaker is importing parts or entire vehicles, they now have to pay that toll. And when that cost goes up? You guessed it—those costs could be passed on to us, the buyers.

The most recent round of auto-related tariffs includes a proposed 25% tax on imported vehicles and parts. This could mean a hike in prices for cars that aren’t made—or at least assembled—right here in the USA. That includes everything from the bolts that hold your bumper in place to the touchscreen in your dashboard.

What’s the Real-World Impact?

In short: new cars might cost more. Some estimates suggest prices could jump anywhere from $2,000 to $4,000 on certain models, especially those heavily reliant on overseas parts. That could also mean fewer discounts, less wiggle room on pricing, and even fewer available models to choose from if supply chains slow down.

But it doesn’t stop at the sticker price. Tariffs can also trickle down to maintenance and repairs. If parts cost more to import, it could mean higher service bills. Even insurance premiums might go up, since replacing damaged parts becomes more expensive.

And with new car prices creeping up, more folks might turn to used cars—meaning higher demand and prices there, too. So whether you're in the market for a new car or planning to hold onto yours a bit longer, it's worth paying attention.

So… Is There Any Good News?

Yes! Despite the doom-and-gloom headlines, some automakers are taking real, concrete steps to protect their customers—and even bring more jobs and production stateside.
Let’s talk about a few of the good guys:

🚗 Ford: From America, For America

Ford has rolled out a bold initiative called “From America, For America,” offering employee pricing to all U.S. shoppers through June 2nd. That’s right—you pay what Ford employees pay, below dealer invoice.

This isn’t a gimmick. It’s a way for Ford to say, “We get it, and we’ve got your back.” And with many of their vehicles built right here in the U.S., Ford is better positioned to keep prices in check even with tariffs looming overhead.

🚙 Chevy: Built Here, Built Proud

General Motors, which owns Chevrolet, is also flexing its American-made muscle. Take the Chevy Colorado and GMC Canyon—built at the Wentzville Assembly Plant in Missouri. Domestic production helps shield these models from tariff-related price hikes and keeps thousands of American workers employed.

And the ripple effect is real: local jobs, more predictable pricing, and better availability for you, the buyer.

🚘 Hyundai: Big Plans, Bigger Investment

You might not think of Hyundai as a made-in-America brand, but think again. Hyundai Motor Group just announced a massive $21 billion investment in the U.S. between now and 2028. That includes new manufacturing facilities, EV development, and yes—lots of jobs.

By committing to more U.S.-based production, Hyundai is working to reduce reliance on imports and offer more price stability for American buyers, regardless of what’s happening on the global trade front.

What Should You Do as a Consumer?

Here are a few tips to navigate the road ahead:

• Look Local: Vehicles built in the U.S. might be less affected by tariffs. Check where your top choices are assembled—you might be surprised.

• Watch for Incentives: Programs like Ford’s employee pricing can offer serious savings. Keep your eyes open, and don’t be afraid to ask what’s available.

• Think Total Cost of Ownership: It’s not just about the price tag. Factor in repair costs, insurance, and long-term reliability.

• Stay Informed: Trade policies change. What’s true this month might shift next quarter. Being in the know gives you buying power.

Final Thoughts

Buying a car has always been a big decision, and in today’s environment, it’s more important than ever to do your homework. But you’re not in this alone. Brands like Ford, Chevy, Hyundai and others are stepping up to support American jobs and ease the financial impact on everyday drivers.

At Tim Moran Auto Group, we’re proud to work with manufacturers who see the bigger picture—who aren’t just building cars, but building trust. Whether tariffs go up, down, or disappear altogether, our mission stays the same: to help you drive away feeling confident, informed, and excited about your next ride.