Tariffs are here, and they are affecting the automotive industry.  

On Wednesday, March 26, a significant announcement was made: new tariffs, more extensive than anticipated and set at a 25% rate, will be implemented starting April 2. 

Last year, about 44% of new vehicles sold in the U.S. were imported from North America, Europe, and Asia. The automotive industry, which relies on a global supply chain, is already grappling with high costs. These new tariffs will further complicate the situation, leading to higher expenses. This increase in costs means fewer affordable options for consumers and could potentially result in lower sales for your dealership. 

Cox Automotive is actively monitoring this evolving scenario and will provide updated insights as new information becomes available. 

In the meantime, here’s how you can stay informed about these rapid changes and prepare for the upcoming challenges. 

Why It Matters 

The North American automotive market has enjoyed 30 years of free trade, so new tariffs in place for any significant length of time will be disruptive. Tariffs of 25% across North America will upend the auto market in the United States and the larger economy. 

What does this mean for you as a dealer? Now is the time to market and list your vehicles to capture this ready-to-buy audience. Shoppers who have been on the fence and waiting for affordability to change will now act. 

The Dealer Opportunity 

All OEMs will be impacted by tariffs because of the cost of parts, so the entire market will increase. Knowing that prices will go up, we expect shoppers to be in the market as early as this weekend looking for cars to buy.  

This means INCREASED SHOPPER ACTIVITY.  

• Surge in Market Activity: Expect a significant increase in market activity in April as shoppers rush to buy before prices rise.

• Consumers Acting Now: Those who have been hesitant will act quickly to avoid higher costs, especially with tax return season peaking. 

It’s crucial to market and list your inventory now to capture this ready-to-buy audience. 

What You Can Do for Your Website 

Optimize Your Website: Your website experience needs to be seamless and easy for shoppers. Any confusion or lack of personalization will have shoppers leaving your website and going to the next dealership. 

Show Relevant Vehicles on SRP and VDP: Ensure your SRP and VDP have updated inventory and displays the most relevant vehicles for these shoppers.  

Invest in Advertising: Market the vehicles on your lot and use the data in your CRM to see what your shoppers want. Now is the time to increase your advertising spend to reach these customers who are actively shopping and BUYING over the next few weeks. Since customers are ready-to-buy, you want your vehicles in front of them so they can CLICK on the vehicles on YOUR lot. 

What We Are Doing 

This is a dynamic situation, and we expect changes to come over the next few weeks. But we are committed to ensuring our dealers can be the most successful under these changing conditions by:  

• Providing more resources in next month to help you capture these shoppers who are ready-to-buy and drive more leads for your dealership.  

• Creating editorial content to help educate shoppers about tariff impacts and best-priced cars. This education will help shoppers make informed decisions. 

• Increasing our spending to ensure our connected solutions are front and center.