Bay Area car shoppers rush to dealerships as Trump administration's 25% tariffs loom
The
Trump administration's 25% tariffs
on imported passenger cars and light trucks are having a noticeable effect on car buyers, as many rushed to dealerships this weekend to make their purchases before the new tariffs take effect.
Edgar Cruz, a Fremont resident, was one of many customers who took the plunge. As he test-drove a Subaru WRX at Premier Subaru of Fremont, his face lit up with excitement.
"It's a nice car to drive," Cruz said, preparing to make a turn in the vehicle.
Cruz had been researching the WRX for the past three months but made the decision to visit the dealership this Sunday due to the looming tariff increase.
"The plan was exactly to get it in two months. Because of the tariffs, I had to decide to get it today. That was the main driver for my decision," Cruz said, explaining how the tariffs influenced his buying timeline.
With the 25% increase on vehicles imported from Japan, Cruz realized the price of his dream car would rise by more than $9,000, a cost he couldn't afford.
"It kind of creates a little bit of urgency," said Gino Ventanilla, a finance manager at Premier Subaru of Fremont.
Ventanilla noted that his dealership, like many others at Fremont Auto Mall, saw increased foot traffic and more serious buyers over the weekend.
"They might be shopping for a few months. And those timelines have kind of been sped up a little bit," Ventanilla added.
Dealerships have assured customers that existing inventory would not be affected by the new tariffs, which will go into effect on April 3 for vehicles imported into the U.S. Additionally, parts shipped from foreign countries will face a 25% import tax no later than May 3.
According to auto industry experts, all makes will be impacted by the tariffs. The National Highway Traffic Safety Administration reported that even companies like Ford and General Motors have cars and parts imported from Mexico and Canada, which could also see price hikes.
"The tariffs going into effect on Wednesday or Thursday, I think, motivated [my wife] a lot more. And she found this car," said Jim Fussell, whose wife purchased a Subaru on Sunday after a year of research.
With new cars now starting at around $30,000, many shoppers are worried that buying a car will soon become even more costly and stressful.
"We're very happy. This will be our second Subaru that we've owned," said Fussell, satisfied with their purchase.
For Cruz, the excitement didn't end with the sale.
"I'm already planning where I'm going to take the car, maybe to the mountains or to the beach," he said, looking forward to the adventures ahead.
Experts suggest the tariff impact may extend beyond new cars. With prices expected to rise on imported vehicles, they predict that used car prices will also climb due to shifts in supply and demand.
The automotive industry is bracing for a shift as tariffs begin to reshape the market, driving urgency for many buyers who are trying to beat the price hike before it's too late.
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