New vehicle prices going up as tariff about to start for foreign manufacturers
Mar 27, 2025
HONOLLU (KHON2) -- Local car dealerships and mechanics have a lot of questions and concerns as a new tariff is about to start, but one thing they say is clear - prices are going up.
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Shopping for a new car
is going to get more expensive. A 25-percent tariff on all imported cars and car parts is set to start April 3. The current base rate for tariffs on imports is 2.5 percent
"I'm not familiar with all of the existing taxes and tariffs, but I do know this new 25-percent tariff on imported vehicles and parts is expected to send prices here in Hawaii higher for new car vehicles," said Melissa Pavlicek, Hawaii Automobile Dealers Association Executive Director.
That has Hawaii auto dealers concerned considering new car sales have been dropping in recent years. And the fact that more than 75-percent of the vehicles sold in Hawaii are made in a foreign country.
"A auto dealers are going to try to address consumer needs no matter what is happening," said Pavlicek. "There are new and used vehicles in Hawaii. And so there shouldn't be any kind of panic buying."
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It's still not clear how the tariffs will affect the prices of specific brands and specific cars. One, the US Department of Transportation says all cars have some parts that are made overseas, and two, almost all manufacturers have a mix of cars made here in the US and overseas.
The only company that is strictly made in the US is Tesla.
Of course with parts prices going up, repairs are going to jump as well.
"It's gonna be brutal, and it's all the way across the board," said Frank Yuen, K & Y Auto Service. "I mean it goes from tires, automotive parts, every part, spark plugs, coils."
"It's not just the tariffs," said Yuen. "You got the property tax, everything around here is just going crazy. So you paying extra labor, you paying extra this, extra that because everything is going up."
Since dealers have inventory on island, it's not known exactly when buyers will start seeing the increase.
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"We definitely are monitoring the situation, but there will always be efforts to make cars affordable for Hawaii residents," said Pavlicek. ...read more read less