How Tariffs Could Impact the Automotive Industry
Since April 2025, a 25% tariff now affects a wide range of cars, trucks, and automotive components. In June 2025, according to Reuters, President Trump announced that he “might go up with that tariff in the not too distant future." Tariffs on imported vehicles and parts are reshaping the American automotive market, with drastic effects on everything from new car prices to maintenance costs. Ultimately, the economic burden will fall on the American consumer because U.S. businesses will raise prices to recoup the costs of tariffs.
The automotive market is facing more challenges, but Dreyer & Reinbold INFINITI South is here to support you! Whether you’re considering purchasing a new car, exploring pre-owned options, or planning your budget for future maintenance, it’s essential to grasp how tariffs influence the market. We’ve put together this guide to explain everything you need to know about the impact of tariffs on new and used car purchases, as well as the availability of auto parts and service costs. Continue reading to discover why we believe that opting for a pre-owned vehicle might be the best choice to safeguard your auto budget.
INFINITI Brand’s Response to Tariffs
INFINITI has taken decisive action in the face of the newly imposed 25% U.S. tariffs on imported vehicles. Citing the sudden cost spike, the brand has placed an indefinite pause on production of its best-selling QX50 and QX55 compact SUVs at the assembly plant in Aguascalientes, Mexico. According to Automotive News, units destined for global markets will keep rolling off the line, but U.S.-bound models are on hold until either the tariff is reduced or removed completely.
The pause, however, is not simply a stop-gap measure. Reports from earlier in 2025 indicated that INFINITI was already weighing the discontinuation of the QX twins in favor of a sleeker, two-row variant of the larger QX60. The tariff shock accelerated that pivot because halting QX50/QX55 exports to the U.S. both avoids the extra duty and gives the automaker room to retool its lineup around higher-margin, tariff-proof models built in North America. In the short term, American dealerships may face tighter inventories, but the swift response from INFINITI signals that the brand is willing to recalibrate production footprints and product plans rather than pass these steep tariff costs on to consumers.
Why Pre-Owned Vehicles Are a Smart Choice
In today's evolving automotive landscape, pre-owned cars emerge as the most sensible choice for one clear reason: They are exempt from new import tariffs. This means that buying used ensures the most stable price available. A pre-owned purchase also reduces the risk of unpredictable price increases and potential supply chain issues. Certified pre-owned cars offer a blend of affordability and dependability, and the pre-owned market still brims with a variety of options, including sedans, SUVs, trucks, and electric vehicles.
As the prices of new vehicles rise, along with the costs of parts and service, choosing a pre-owned car can lead to significant savings, not just at the initial purchase but throughout the vehicle's lifetime. Purchasing a pre-owned vehicle allows consumers to maintain better financial flexibility and greater control over the overall cost of ownership.
Impact on New Car Buying
Tariffs are already having a significant impact on the new car market. With a 25% duty imposed on imported vehicles, manufacturers are encountering increased costs, which are likely to be passed on to consumers. Many popular models priced under $40,000, such as compact SUVs and sedans like the Toyota Corolla, Honda Civic, and Nissan Rogue, are particularly affected. Companies like Volkswagen have indicated that these tariffs will appear as distinct “import fees” on window stickers. Consequently, prices for new vehicles may rise considerably, with some forecasts suggesting increases of 10–15% or more. Additional considerations for buying new cars in a post-tariff world include:
- Some brands are offering special discounts, including employee pricing for all buyers on select models. However, these programs are often temporary and inventory-dependent.
- As production slows due to higher costs and supply chain adjustments, availability could tighten by the summer. Buyers considering a new car are encouraged to move quickly while “pre-tariff” inventory lasts.
- You can also explore other options, such as leasing or shopping for models built primarily in the U.S.
Impact on Pre-Owned Car Buying
Quality pre-owned vehicles have rapidly emerged as a reliable option for shoppers on a budget. Because tariffs impact only newly imported cars and parts, pre-owned vehicles, which are already in circulation, are not subject to these extra costs. This means that unlike new models, used cars won’t experience unexpected price increases due to tariffs, making them a more stable and predictable option for buyers. Certified pre-owned cars also provide added reassurance with warranty protections and thorough inspections. Additional benefits of buying pre-owned include:
- Pre-owned vehicles help buyers dodge the steep depreciation that comes with buying new.
- The price gap between new and pre-owned vehicle costs is widening even further.
- The lower sticker prices of pre-owned vehicles result in lower sales tax than buying new.
Impact on Parts and Repairs
Tariffs on imported automotive parts are expected to raise vehicle repair and maintenance costs. Today’s modern vehicles, including those built in the U.S., depend on parts from around the world. As a result of the 25% import duty, items like replacement bumpers, sensors, transmissions, and even essential maintenance supplies are likely to see price increases. Important factors to consider when obtaining parts and scheduling repairs after the tariffs take effect include:
- While some brands are working to localize production to avoid long-term disruption, parts shortages and delays could become more common.
- Service centers may face rising costs, which could trickle down to consumers in the form of higher repair bills.
- Owners may want to consider extended warranties or prepaid maintenance plans now, before service prices potentially spike.
Impact on Service and Maintenance
These tariffs may result in increased service costs in the near future. Essential components for routine repairs—like brakes, batteries, tires, and engine parts—could experience price hikes. This is particularly concerning for vehicles that depend heavily on imported parts. This increase in costs could impact everything from oil changes to significant mechanical repairs. Therefore, we suggest that you prepare and plan for a potential rise in the total expenses associated with vehicle ownership. To mitigate these impacts, drivers should:
- Prioritize regular maintenance as soon as possible to prevent costly repairs later.
- Schedule a comprehensive service checkup or invest in maintenance plans to save money in the long run.
- Opt for a pre-owned vehicle with a simpler design or one sourced from North American production lines, which may help drivers sidestep future service price surges tied to tariffs.
Why You Can Trust Dreyer & Reinbold INFINITI South During These Uncertain Times
Tariff headlines can feel unsettling for car shoppers, but Dreyer & Reinbold INFINITI South is committed to guiding you through every twist and turn. As the 25% import duty on many foreign-built vehicles evolves, automakers are reassessing production schedules, pricing strategies, and model lineups. Our team closely tracks these developments so we can adjust ordering and incentives in real time, shielding you from sudden cost spikes and keeping a healthy mix of new and pre-owned INFINITI models on our lot. Think of us as your personal tariff translators: We will explain what the latest policy changes actually mean, share transparent pricing upfront, and flag factory or lender programs that can offset any increases.
Even in a shifting landscape, buying from Dreyer & Reinbold INFINITI South remains refreshingly straightforward. Our intuitive online tools let you browse live inventory, confirm availability, value your trade, and start financing from home—so you can lock in today’s deal before tomorrow’s news cycle. Should tariffs affect a specific model you’re eyeing, we’ll outline flexible alternatives, including attractive lease terms, domestic-built options, or certified pre-owned vehicles that sidestep import duties altogether. Backed by factory-trained technicians and service plans that tame long-term ownership costs, we’re here for the road ahead—no matter how bumpy the policy terrain becomes.
Tariffs FAQs
How will tariffs impact new car prices?
New car prices could increase by 10–15% or more, especially with models priced under $40,000. Auto manufacturers are likely to pass these added import costs on to consumers.
Will pre-owned car prices be affected by tariffs?
Pre-owned vehicles are not subject to tariffs, so they offer a more stable option for car buyers. However, if new car prices climb significantly, the increased demand for pre-owned vehicles could push the prices up over time.
Should I buy a new or pre-owned car right now?
Given the uncertainty, buying a pre-owned car may offer the best protection against tariff-driven price hikes. Certified pre-owned options give you the value of buying pre-owned with additional peace of mind.
Will auto parts and service become more expensive because of tariffs?
Yes. Starting in May 2025, tariffs on imported parts could raise the cost of repairs and maintenance. Vehicles dependent on foreign-sourced parts may see the biggest increases.
How can I tell if a car is impacted by tariffs?
The quickest way is to check the VIN and window sticker. The VIN will tell you the country of manufacture, and the window sticker will list the percentage of domestic versus imported parts.
How long will tariffs last?
As of April 2025, there is no set end date. As of June 2025, President Trump stated that he “might go up with that tariff in the not too distant future." Tariffs could remain in place indefinitely but may be adjusted depending on future trade negotiations between the U.S. and its foreign partners.