Tariffs are a tax that American business owners must pay to the government on imported goods from other countries. With the new 25 percent tax levied on imported vehicles, dealerships will likely have to raise the cost of imported vehicles for their customers.
 Additionally, a tariff on imported automotive parts is scheduled to start in May 2025, impacting all vehicle types, whether assembled in the U.S. or abroad.
How Will Tariffs Impact Buying New Vehicles?
Economists expect the new tariffs on imported vehicles and parts will likely drive up the cost of new and used vehicles, whether made in the U.S. or imported from other countries. Here is what you should know about the potential effect of tariffs on the automotive industry:
If You Are Thinking About Buying a New Car, Do It Now
The vehicles currently on the lot are not directly affected by the new tariffs. The 25-percent tariff only applies to vehicles imported on or after April 3, 2025. Ford and Lincoln dealerships are also offering Employee Pricing, also known as the A/Z plan, for all Americans until June 2025. Get ahead of the price increases due to tariffs and enjoy employee pricing before vehicle costs go up.
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New Imported Vehicles Will Likely Cost More
The cost of tariffs is typically passed on to the consumer. With a tariff as high as 25 percent, it's nearly impossible for a dealership to earn a profit on new vehicles without raising prices. About 50 percent of all vehicles sold in the U.S. are imported, and all vehicles are made with imported parts. The tariffs could cause all new and used vehicles to cost more as demand increases and favor moves away from the buyer.
Used Cars Might Be Worth More
If you want to sell or trade your vehicle, it could be worth more as demand increases. With rising costs for new vehicles, used cars could become an attractive alternative, which means your used vehicle may be worth more. Do you have a vehicle to sell? You might want to wait and see what happens with used vehicle prices and potentially get more money for your current vehicle.
Contact Laurel Ford Today
Don't wait! Contact us today to take advantage of today's pricing and our Employee pricing for select new Ford vehicles.
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Laurel Ford Lincoln
135 Ford Drive
Windber, PA 15963
- Sales: (814) 467-5565
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