Car Tariffs in 2025: Which Models Are Affected?
How New Import Taxes are Affecting Vehicle Prices
In 2025, new car tariffs were introduced on vehicles assembled outside the United States, sparking questions about how this will affect pricing at the dealership. These tariffs—essentially taxes on foreign-assembled vehicles—are designed to promote domestic production but may lead to higher prices on imported models.
This guide will help you understand which models are not affected by the 2025 tariffs.
What Is a Tariff?
A tariff is a tax applied to goods imported from other countries. In the automotive world, these auto tariffs target vehicles assembled outside the U.S. (most commonly Canada and Mexico), meaning certain models may see increased prices. But here’s the good news: several popular models are assembled in the U.S., and those vehicles are not subject to these tariffs.
Additionally, tariffs on imported vehicle parts are set to go into effect on May 2nd, 2025, which could impact production costs and vehicle pricing in the months ahead.
How Tariffs Affect Car Prices
So, how will tariffs affect car prices in 2025? The answer depends entirely on where your vehicle is assembled. If it’s built outside the U.S., it could be subject to new tariffs, which would likely raise its price. Here’s how that may impact your purchase:
- Higher Manufacturing Costs: Tariffs on steel, aluminum, and electronic parts can increase production costs—even for U.S.-assembled vehicles.
- Market Uncertainty: Fluctuating policies make it difficult to predict pricing trends, creating pressure to buy sooner rather than later.
- Increased Vehicle Prices: Automakers may pass these costs along to consumers.
Vehicles Not Affected By Tariffs
If you're looking to avoid unexpected price hikes, focusing on vehicles assembled in the United States is your smartest move. These models are not subject to the new 2025 import tariffs, which means they maintain their standard pricing and are less likely to be affected by global trade volatility.
For most other brands, visit this Car & Driver news post on tariffs.
How to Get the Best Deal on a Car
Even with tariffs in play, there are still smart ways to save on your next car:
- Explore offers & incentives: From low-APR offers to lease specials, these deals can offset potential price hikes.
- Prioritize U.S.-built models: Choosing an American-assembled VW like the ID.4 or Atlas can help you avoid tariff-related increases.
- Look at Certified Pre-Owned: Certified used vehicles offer exceptional value and quality with warranty coverage.
- Buy early: If you’re considering an imported model, acting before any additional tariff changes could help you save.
Stay Informed at Bud Clary Auto Group
Our team at Bud Clary is staying up to date on all tariff developments and how they affect car prices. We’re here to help you navigate changes in the market and find the right vehicle for your needs—without the stress. Visit any of our 14 Washington dealerships today and let us help you shop smart, save more, and drive away with confidence. Contact us today!