San Diego auto dealers brace for impact of new 25% import tariffs
Mar 29, 2025
ESCONDIDO, Calif. (FOX 5/KUSI) — As the deadline for new 25% auto import tariffs draws near, dealers in San Diego County are bracing for a potential shake-up in the industry. The impending changes are fueling concerns about the impact on sales and consumer interest.
On April 3, next Thurs
day, is when those new tariffs will take effect and the White House is also planning more on auto parts in the weeks to follow, putting pressure on everyone from manufacturers to consumers.
“The overall consensus is that it is probably going to raise prices but we don’t know how much and when," said Dan Myers, general manager of Toyota of Escondido.
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The recent tariff talk coming out our nation’s capital is keeping industry insiders, like Myers, on edge. The new 25% tariffs on vehicles not made in the United States are less than a week from kicking in and Toyota stands to be hit, along with other brands.
Alan Gin, economics professor at the University of San Diego Knauss School of Business, commented on the situation, stating, "“We have an integrated supply chain in North America where cars are produced at different locations and then they cross the border many times in the production process.”
Gin says Canada and Mexico are top exporters not just of autos but auto parts, which will likely see 25% import tariffs by early May. Recent steel and aluminum tariffs are already market factors; all that combined is expected to drive up costs.
“I’ve seen estimates where the tariffs could raise the price of a car by anywhere from $3,500 to $12,000," the economics professor explained.
The average price for a new vehicle last month was roughly $48,000, according to Kelley Blue book. But concerns over affordability aren’t limited to new vehicles.
“Everyone is kind of scrambling too to stock up on used cars because the vehicles that are going to be hitting the used car market months from now are going to be probably higher,” said Myers.
President Trump is warning U.S. automakers not to increase prices in response to tariffs.
“The president can ask companies to raise their prices but that’s going to impact the profitability as far as the car companies are concerned," said Gin. "It might cause them to lose money then.”
The economics professor says those in the market for a new car will likely buy now to avoid paying more or not buy at all.
“There are a lot of unknowns and we are committed to customer service, and we’re going to ride those waves out with our customers," said Myers.
Gin also says while the president wants auto manufacturing to come back to the U.S. entirely, it would take years and billions of dollars in investments to make that happen. ...read more read less