What We Know About Auto Tariffs 2025

The 2025 Auto Tariffs have officially gone into effect, bringing significant changes to the way vehicles are priced, imported, and sold across the United States. These tariffs aim to boost domestic manufacturing. At Kunes Auto, we understand that our customers, partners, and staff have questions—and we intend to provide clear, up-to-date answers.

Below, we break down the impact of auto tariffs in 2025, what they mean for car buyers, and how auto dealerships like Kunes are responding. Cox Automotive provides valuable insights into how these tariffs affect new vehicle sales forecasts, consumer behavior, and the overall automotive market.

Tariffs are essentially taxes that a government places on imported goods, and they can significantly affect various sectors, including the auto industry. The recent decision to impose a 25% tariff on imported autos and auto parts is a prime example of this. These tariffs are expected to impact car prices and disrupt global supply chains, making it a hot topic for both consumers and industry insiders.

The auto industry is a significant contributor to the U.S. economy, and these tariffs are likely to have a ripple effect. Car sales, light trucks, and other related industries could all feel the impact. The European Union has already expressed concerns, fearing that these tariffs could escalate into a broader trade war.

For car buyers, the immediate concern is the potential for price hikes. Higher tariffs on imported autos and auto parts mean that manufacturers may pass these costs onto consumers, leading to higher sticker prices. This could result in a decline in car sales as buyers become more cautious.

Under recent trade policy shifts, the current administration's car tariffs have introduced increased import duties on certain foreign-made vehicles and parts. March 26, 2025, marks a significant date related to the implementation of these tariffs. These new car import tariffs target a range of models from Europe and China, with the stated goal of boosting domestic manufacturing and reducing the U.S. trade deficit.

Key points include:

• New tariffs on European cars, especially luxury and electric models
• Increased import taxes on vehicles and auto parts from China
• Revised rates on foreign car components, affecting manufacturing costs in the U.S.