25% tariff on imported vehicles starts April 2

A 25% tariff on imported vehicles and parts from Canada and Mexico is set to start on April 2. This change has created uncertainty in the U.S. auto market, affecting both car buyers and dealers. General manager Brandon Wishengrad, who runs a Nissan dealership in Los Angeles, cannot predict how the tariffs will change car prices. He acknowledges the confusion and worries among customers about whether they should buy a car now or wait. The average price of a new car could rise by $3,500 to $10,000 due to these tariffs, according to the Anderson Economic Group. Many vehicles are partially assembled in the U.S. but rely on parts from Canada and Mexico. Jessica Caldwell, from Edmunds, says understanding the full impact of the tariffs is complicated. She mentions that automakers are still figuring out how the tariffs will affect them and that manufacturing adjustments will take time. Caldwell warns that not just new car buyers will feel the impact; those needing repairs will also see higher costs. She suggests that discounts on new cars may disappear soon. “Buyers should consider purchasing sooner rather than later,” Caldwell said, as the future of the tariffs remains unclear. Wishengrad believes that the ongoing discussions and changes regarding trade have started to confuse consumers. He notes that many people are tuning out the noise surrounding the tariffs.