The Rush to Buy Cars in Detroit Amid Tariff Concerns

The looming auto tariffs imposed by U.S. President Donald Trump are driving a surge in car sales in Detroit, as consumers rush to buy vehicles before potential price hikes. Jerry Chen, who recently purchased a Toyota Highlander with his family, is among those who decided to buy sooner than planned, fearing that tariffs would raise vehicle prices. "I think it's a good time to get a new car before prices go up," he said.

Sales figures confirm the trend, with U.S. vehicle sales rising by over 10% in March compared to the previous year. Toyota dealerships, like the one where Chen bought his vehicle, are reporting a 20% increase in sales compared to prior years. Bob Page, the dealership owner, mentioned that more customers are choosing to purchase cars now instead of waiting months, anticipating higher prices.

The tariffs, which will impose a 25% tax on imported vehicles not covered by the Canada-United States-Mexico Agreement (CUSMA), are expected to raise car prices by thousands of dollars. Despite the current sales boom, dealership owners are concerned about the long-term effects of the tariffs, especially as they may drive up prices even further.

While some dealers are optimistic that negotiations will lead to favorable outcomes, others, like George Glassman, worry about the future impact. "If someone can buy a car now, they have the certainty of knowing the cost," Glassman said. With higher demand for vehicles before the tariffs take effect, many dealerships are running low on tariff-free inventory, particularly in the case of imported cars.

Analysts suggest that the Big Three automakers General Motors, Ford, and Stellantis will be among the hardest hit by the tariffs, as many of their products come from Canada and Mexico. The shift toward domestic production will take years, making it a challenging transition for both automakers and consumers.

As uncertainty continues, the current rush to purchase cars is expected to persist until the tariffs take full effect.