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About President Trump’s Automotive Import Tariff

Tariffs are taxes imposed on imported goods, which includes vehicles and automotive parts manufactured outside the United States. Even if a vehicle is made here in the U.S., components, raw materials, and parts may originate from international suppliers, making them subject to tariff-related cost increases.

How Tariffs Impact Vehicle Buyers

1. Price. Higher OEM costs due to these tariffs affect the price of new and pre-owned vehicles imported into the United States. This includes dealer lease incentives and financing options. The tariff that goes into effect April 2nd will increase these prices by 25%. How much of that will be passed on to consumers is still uncertain.
2. Inventory. Production and import adjustments may cause vehicle/model and parts availability shortages.
3. Pre-Owned Pricing. Commonly, the rise in price of new vehicles drives up demand for local and national pre-owned models, which can drive up market costs and demand increases, and availability tightens.
4. Service and Parts. Tariffs on imported parts are likely to lead to increased costs for maintenance and repair.

Act now, or wait — What is the right answer?

If you were not in the market for a new vehicle in the near future, then you can certainly wait and see how this will play out over time.

However, if you were considering a new vehicle in the next 12-18 months, it would be wise to look into pre-tariff pricing now, even if you weren’t expecting to expedite your new vehicle purchase.

These are the key reasons to act now:

1. Lock in current pricing. On April 2, if the President holds true to his plan, expect a substantial financial increase, especially for higher-end models.
2. Avoid inventory shortage. Right now, a full range of models are available, and as consumers look to buy now vs. later, vehicle and model availability may become scarce.
3. Secure current offers and specials. Incentives and financing are going to be subject to change as these tariffs go into effect.
4. Schedule service.Repairs, parts, and maintenance are all facing potential impact of the new tariffs, so now may be the time to book service on your current vehicle.

Porsche North Olmsted is committed to you

In the current political and global trade climate, much can seem uncertain. Our team is eternally committed to providing you the very best service and the most complete and honest answers that we can offer regarding the potential upcoming changes. We pride ourselves on our Worry-Free client experience, and we will continue our commitment in helping you make a Worry-Free decision.

If you have any questions, please do not hesitate to reach out to any of our team members. I've included a button below to our team directory which includes individual phone numbers and email addresses for all of our leadership, consultant, service, and sales team members.