US car buyers rush to dealer lots to dodge tariff-related price hikes

Concern over impending 25% tariffs on vehicles imported from Mexico and Canada has spurred U.S. car buyers to expedite their purchases, with many racing to dealer lots to lock in current prices before any increases take effect.

Matthew Mitchell, a local resident, recalled the moment he decided to act quickly after hearing President Donald Trump’s tariff plans. “I was like, ‘Ok, we’re going this weekend,’” he said, as he rushed to a dealership in Walnut Creek to secure a 2019 Toyota Camry in early March. Mitchell is among a growing number of consumers who fear that Trump’s tariff threats could lead to significant price hikes at the showroom.

Though the tariffs have not yet impacted dealer inventories – which currently boast an average three-month supply – the uncertainty has already shifted consumer behavior. Between February 16 and 22, searches on the car-shopping website Cars.com jumped 9% from the previous week, according to analyst David Greene. “When the conversation turned to tariffs on all imports and the new auto tariffs were pushed to April, searches on Cars.com really started to climb,” Greene explained.

The tariff uncertainty is affecting buyers on both sides of the border. In Calgary, Canada, Darby Madalena hurried to a local dealership to purchase a 2025 Subaru Forester nearly a year ahead of schedule. “It didn’t make sense to wait anymore,” she said. Similarly, Philip Hodge finalized his purchase of a new Mustang Mach-E, imported from Mexico, remarking, “I was like, let’s just get it done now and not worry about it.”

While car dealers report having ample inventory – with an average of 96 days of supply on lots in February, a 26% increase from the start of the year – some see the short-term uncertainty as a potential boon. “When people start hearing that tariffs are coming, they’ll probably want to come and buy my cars out of stock,” said Jim Seavitt, a Ford dealer in Dearborn, Michigan. Seavitt noted that strong sales during the week of March 3 were largely due to promotional deals rather than direct tariff fears.

Several dealerships have even used the threat of rising prices as a sales tactic. One Subaru dealership in Connecticut prominently displayed a banner reading, “Final clearance pricing on remaining 2024s – save now before tariffs drive prices up.”

The looming tariffs add to broader concerns as cars have become less affordable since the pandemic. According to Cox Automotive, the average vehicle sales price reached $48,641 in January – a 30% increase from $37,348 in January 2019. Some buyers, like Saud Ansari from the Cleveland area, had already accelerated their purchases following Trump’s election. Ansari, who recently bought a 2025 Toyota Sienna near Columbus, cited tariff threats and rising interest rates as key motivators. “I’m glad to have it out of the way for a few reasons. Number one is the uncertainty ahead,” he said.

As U.S. consumers rush to beat potential tariff-related price hikes, the automotive market remains in a state of flux, reflecting broader economic uncertainties and shifting trade policies.

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