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Key Takeaways
- More than a third of car buyers said tariffs prompted them to change their buying plans, with the vast majority stating that they bought sooner than they had planned, according to a survey.
- Tariffs have had a limited impact on vehicle prices so far because automakers have eaten the costs.
- The survey highlighted the far-reaching effects of tariffs on the economy.
Tariffs influenced the buying decisions of more than a third of car buyers this year, showing the far-reaching effects of President Donald Trump’s sweeping import taxes.
That’s according to market research firm J.D. Power, which found 36% of buyers factored in tariffs when purchasing a new vehicle this year, and 87% of those bought sooner than they had planned as a result. Buyers of vehicles made in Europe and Japan were most affected, according to the survey of 32,616 car buyers released Wednesday.
The report also hinted at the impact of tariffs on prices, as 15% of respondents reported paying more than they had planned.
What This Means For The Economy
The survey shows how the new import taxes have changed the spending patterns of American consumers. When the buying habits of the general population shift, it can have far-reaching effects on the U.S. economy.
Car buyers rushed to make purchases this spring to get ahead of Trump’s car tariffs, which took effect in May.
Tariffs haven’t yet driven up consumer prices as much as anticipated, since automakers have avoided passing the costs to customers. But forecasters expect that consumers will soon have to take on a share of the cost, which will hit hard, given that many are already struggling to afford a new car.
In August, Cox Auto predicted vehicle prices would rise 4% to 8% as manufacturers raised prices on 2026 models.
The survey underscores how far and wide the import taxes, Trump’s signature trade policy, have sent shockwaves through the economy. Economists say the tariffs have raised prices and dragged down job creation across industries, among other effects.
