Navigating auto tariffs: What they mean for your next car purchase

Utah car prices could radically shift in the next few months. In April 2025, President Donald Trump’s auto tariffs went into effect, putting a hefty 25% tax on vehicles coming into the U.S. It applies to all sedans, minivans, crossovers and SUVs, light trucks and cargo vans.

But it’s not just new vehicles that will be affected. Imported parts American manufacturers rely on to build cars here are subject to the tariff as well.

Imported vehicles and parts are now subject to a 25% tariff.

How much will car prices increase after tariffs?

Analysts suggest Trump’s tariffs will raise the cost of imported vehicles — any that is fully built outside the U.S. — $8,600 on average. And while manufacturers may be willing to absorb some of that, there’s little doubt the cost increase will be passed on to buyers.

Even U.S. manufacturers — Ford, General Motors and Stellantis — will need to shell out more to build vehicles. The Detroit Three have relied on imported parts to make their cars and trucks for years. Now, costs will be higher for internationally outsourced electrical components, engines, powertrain parts and transmissions.

A study by the Center for Automotive Research said the new tariff on parts, alone, will cost the companies nearly $5,000 per car on average. Electric vehicles and hybrids are expected to be impacted the most by the increase. The tariff on Chinese-produced lithium-ion EV batteries, for example, jumped from 7.5% to 25% as of April 3.

Imported auto parts, such as transmissions and engines, are subject the 25% tariff. As a result, repairs may get more expensive too.

Other car expenses could rise

Not only will it cost you more to buy a vehicle, you may see hikes in your auto insurance. Due to more expensive repairs, insurers will need to pay out more on claims, which means your premiums will likely be bumped too.

Car repair costs won’t come cheap either. Because imported parts are affected by the April tariffs, you can expect to pay more for standard repairs and replacement parts. It could also mean waiting longer for those parts to become available.

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New vs. used: What do auto tariffs mean for Utah drivers?

If you’re thinking about purchasing a new car, it’s not too late to get pre-tariff prices. According to Kelley Blue Book, new vehicle list prices stayed steady in March, before the tariffs went into effect. Major auto dealerships aren’t expected to hike prices on their current inventory, so you may be able to get a better deal now than if you wait a few months.

New vs. used? The question may be tricker to answer over the next few months.

Why used cars prices could jump

If you’re considering a previously owned vehicle, it might be wise to jump on that too. As new vehicle prices go up, used car prices could follow suit. KBB reports the price of used cars was edging up slightly in March, possibly in anticipation of the tariff.

If shoppers decide to hold off on buying a new car, it could shrink the pool of used cars significantly. And, as the principle of supply and demand dictates, if used car demand goes up, the value increases — as will the cost.

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Fewer late model vehicles available

It may be especially difficult to find late model used vehicles — those under five years old or  under 100,000 miles. While there are often hundreds of newer vehicles available on KSL Cars, owners may decide to hold onto their cars and trucks that are still under manufacturers warranties. 

The good news is, if you’re selling your vehicle, you may get more than you’d anticipated.

What Utahns can do now

If you are already in the market for a new car or truck, or even just considering buying in the next six to 12 months, you might want to purchase one sooner than later. It could save you thousands to act quickly when you find a model that appeals to you.

Find Utah’s largest inventory of vehicles on KSL Cars. Search now, before prices shift!

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