American car buyers are flocking to dealerships to buy vehicles ahead of anticipated price increases due to President Donald Trump’s proposed 25% tariffs on imports from Mexico and Canada.
Matthew Mitchell, a California resident, quickly purchased a 2019 Toyota Camry after hearing about the tariffs. “We’re going this weekend,” he said, driven by fears of higher car prices.
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Increased Demand:
According to Cars.com, searches for cars increased by 9% between February 16 and 22, as buyers responded to the tariff uncertainty. -
Dealer Impact:
Despite the rush, car dealers currently have a comfortable three-month supply of vehicles. Inventory levels in February were up 26% from the start of the year, averaging 96 days of supply. -
Cross-Border Effect:
Canadian buyers are also reacting. In Calgary, Darby Madalena bought a 2025 Subaru Forester a year ahead of schedule to avoid potential price hikes. -
Sales Tactics:
Some dealerships are using tariff fears to drive sales. A Subaru dealership in Connecticut advertised, “Final clearance pricing on remaining 2024s — save now before tariffs drive prices up.“
The uncertainty stems from Trump’s repeated delays on the tariffs, originally set to take effect in February but now pushed to April. For many buyers, the threat of higher prices and rising interest rates has been enough motivation to accelerate purchases.
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