STREETSBORO, Ohio — Car prices will likely be going up soon after President Donald Trump's 25% tariff on imported automobiles went into effect on Thursday. Nationwide auto sales have surged as people race to buy vehicles before we start seeing the impacts of the tariffs.
“Since we've gotten the tariff news, the last two weekends have been extremely busy and even during the week too,” said President of Great Lakes Auto Network Joey Huang.
The Trump administration’s new tariffs have some Americans rushing to dealerships to avoid paying more money for a car, including at Great Lakes Hyundai in Streetsboro.
“People are coming in and saying my lease is expiring in a few months, and I’d like to do something now while they're still inventory,” said Huang.
In Northeast Ohio, new vehicle sales rose 7.75% in March compared to last year, according to the Greater Cleveland Automobile Dealers Association.
The spike was fueled by the new automobile tariffs, hoping that they would prompt auto companies to produce more cars domestically.
"So, majority of our Hondas and Hyundais are made right here in the United States. So, for us, it's not going to affect us as much,” Huang said.
Hyundai and Honda only make a few vehicles out of the country, but he is expecting inventory to get tight in the next few months.
“Our inventories are going to get tighter for one reason because a majority of the automakers that are bringing cars in from Canada or Mexico are going to either slow it down or not bring their cars in right now,” said Huang.
He said the best time to buy a car is now.
"I don't think we're going to see better rates later this year, only because supply is going to be tougher. And since supply is going to be tougher with the products, manufacturers are less likely to give better deals at that time,” said Huang.
Some automakers have already indicated they are prepared to raise prices on cars they sell to dealers and to pause production on certain vehicles. However, Ohio State Senator Bernie Moreno is hopeful the price tag on most cars will not increase.
“We've seen zero indication of any kind of price increase, especially in the automobile business. When car companies are offering their best discounts possible, it's a great time to buy a car again,” said Moreno.
In response to the 25% tariff on all imported cars, British carmaker Jaguar Land Rover paused shipments to the United States for a month. According to the company, there are more than 200 dealerships in the United States.
It is unclear the exact impact tariffs will have on car sales, but COX Automotive is predicting 700,000 fewer cars will be sold in 2025.
