With potential price hikes, supply chain disruptions, and shifting consumer demand, President Donald Trump’s executive order imposing a 25 percent tariff on all imported autos and auto parts is sending ripples across the industry.
In today’s special edition of Inside Automotive, Mike Stanton, CEO and President of the National Automobile Dealers Association (NADA), joins us to break down what this new tariff means for the auto industry. We’ll explore how these tariffs could impact jobs, affect used car prices and trade-in values, and what dealers and automakers can do right now to stay ahead of the situation.
Key Takeaways:
- Potential Impact on Vehicle Affordability – Stanton emphasized that President Trump’s 25% tariff on imported autos and parts could significantly raise vehicle prices. With new car prices already averaging nearly $50,000 and monthly payments approaching $800, further increases could strain consumer affordability and drive up used car prices as well.
- NADA’s Advocacy Efforts – Stanton reassured dealers that NADA is actively engaging with the White House, Congress, and federal agencies to voice concerns about the tariffs’ effects on dealerships and small businesses. The organization is pushing for a measured approach that supports domestic manufacturing without causing immediate disruption to the industry.
- Dealers Adopting a Wait-and-See Approach – While some dealers remain optimistic, many are bracing for potential short-term challenges. Stanton noted that manufacturers are providing limited price protection, but uncertainty remains about the long-term impact. Dealers are preparing to adjust their operations, including shifting focus to used vehicles, F&I, and service departments, while awaiting further details from the administration.
As the industry awaits further details on President Trump’s tariff plan, dealers and industry leaders are navigating a period of uncertainty. While NADA continues to advocate for policies that protect affordability and fair competition, dealers are bracing for potential price hikes and market shifts. The coming weeks will be crucial in determining how the tariffs will impact the industry, but for now, the focus remains on resilience, adaptability, and strategic planning.
"The car is a symbol of freedom in this country and a symbol of the American dream." – Mike Stanton
