Navigating tariff turbulence

While recent deals have lowered rates to 15% for auto imports from Japan, the EU, and South Korea, tariffs are still significantly higher than pre-2025 levels. Higher rates and uncertainty remain for other key U.S. trading partners. As a result, the average cost of a new vehicle — already at a record high of $49,000 — could climb by an additional $2,000 to $6,000 according to estimates.^{1 2} 

For dealers, this creates a challenging new landscape. You’ll now need to navigate a trade environment with country-specific rules and complexities, intensifying cost pressures and squeezing margins.

This isn’t just a matter of consumer affordability — it’s a direct hit to dealer profitability. Sales patterns have been volatile, with June down 5.6% year-over-year followed by July’s modest 3.7% uptick.³ This uneven demand reflects tariff uncertainty rather than healthy market fundamentals. Meanwhile, used car demand continues to surge as consumers seek affordability, but dealers face the challenge of sourcing inventory in an already tight supply market.

How Cars Commerce helps you navigate change

Tariffs may be out of your control — but how you adapt to them isn’t. Cars Commerce gives you the connected tools to protect profits, engage buyers, and move inventory confidently in a shifting market:

Tariff exposure: what dealers need to know upfront

With tariffs hitting the industry, the degree of pricing disruption depends on two factors: where a vehicle was assembled and how much of its content comes from outside the USMCA region.

Use the chart below to assess exposure across your inventory — and make proactive decisions to protect margin, prioritize sourcing, and communicate value to shoppers.

Tariff Sensitivity by Assembly & Content

A guide to understanding which vehicles may feel the biggest pricing pressure

Category	Effective Impact	Vehicle Type	Strategy
1	Low (0–5%)	U.S.-assembled w/ high USMCA content and compliant parts	Prioritize — lowest pricing disruption
2	Moderate (5–15%)	U.S.-assembled w/ foreign components, especially from non-FTA countries	Adjust pricing and margin expectations
3	High (10-50+%)	Fully imported vehicles	Minimize exposure, expect pricing volatility
4	High (10–25+%)	Tariffed inputs: aluminum, steel, copper, batteries, chips, etc.	Stock up and prep Fixed Ops accordingly

Tariffs by Country

A guide to understanding the various tariffs broken down by country. (These countries account for more than 90% of total U.S. auto imports.)

Country/Region	Tariff Rates	Items Included
Mexico (USMCA Partner)	25% on non-U.S. content of USMCA-compliant goods; 25% on non-USMCA-compliant goods	All vehicles & auto parts
Canada & Mexico (USMCA Partners)	35% on non-U.S. content of USMCA-compliant goods; 35% on non-USMCA-compliant goods	All vehicles & auto parts
Japan, European Union (EU), & South Korea	15% effective rate	All vehicles and auto parts*
United Kingdom (UK)	10% for first 100,000 vehicles annually; 25% above quota	First 100,000 U.K.-origin passenger vehicles annually & accompanying parts (at 10%)*
China	27.5% effective rate; 102.5% effective rate for EVs and PHEVs	All vehicles and auto parts*

*25% Chicken Tax still applies for light-duty trucks and stacks on top of existing rates

Tariffs, shopper shifts & your opportunity

Tariffs don’t just change what customers pay — they affect every line of your dealership’s balance sheet. New vehicle demand is already softening, and used demand is rising fast as shoppers seek more affordable alternatives. But sourcing that inventory is harder than ever with used supply projected to shrink another 6.7% in 2025 alone.⁴

So far, manufacturers have absorbed most tariff costs rather than raising prices. But this can’t continue as their profits shrink. Even domestic producers face pressure from tariffs on imported steel, aluminum, and copper, plus high duties on batteries and chips that get passed through the supply chain.

It’s easy to understand how today’s shopper is overwhelmed. They’re asking: What should I buy? Can I afford it? Where do I even start?

This is your opportunity to step in with affordability tools, real-time pricing support, and trusted digital experiences that remove friction from the decision process.

This is exactly where the Cars.com Marketplace proves essential. Even before tariffs, 71% of Cars.com shoppers were undecided on make and model⁶ — unsure of what to buy or who to buy from — and used the platform’s listings, reviews, and editorial content to narrow their decision.

Build confidence when confidence is low

When economic pressure rises, trust becomes the deciding factor. Shoppers aren’t just comparing prices — they’re evaluating which dealership feels honest, helpful, and worth their time. And in a market defined by uncertainty, your reputation is more than a reflection of past service, it’s a reason to buy now.

That makes review generation a core revenue lever. Every sale, every service appointment, every handoff is an opportunity to build credibility and trust.

Equally important is how your reputation and differentiators show up on your website. When pricing isn’t a competitive edge, your story has to be. Leverage homepage banners and VRP callouts to promote your experience, emphasize value-added assets like Cars.com’s Best Value badges or your OEM’s inclusion in the American-Made Index; and reinforce your dealership’s promise across every shopping touchpoint.

Your digital storefront is where first impressions are made. During a time when shoppers are weighing every dollar, make sure yours communicates confidence, transparency, and ease.

Messaging strategies that move shoppers

As shoppers weigh their decisions more carefully, your messaging needs to meet them where they are, with clarity, urgency, and confidence.

Use these creative themes to shape your marketing and website messaging, helping shoppers navigate uncertainty and move forward with your dealership.

The time to buy is now

Show shoppers why today is the right time to buy with messaging that creates urgency. By highlighting your available pre-tariff inventory, you can give shoppers a clear reason to take action before prices climb and availability decreases— especially for EVs, which face expiring tax credits and multiple tariff pressures.

American-made advantage

Nearly 2 in 3 shoppers say they’re more likely to consider vehicles not impacted by tariffs.⁷ If you sell American-built vehicles, now’s the time to promote them.

Affordable vehicles

When affordability is top of mind, point shoppers to your most budget-friendly options, like “under [$XX,XXX]” listings or special lease offers. Helping them quickly find vehicles that fit their price range builds trust and drives engagement.

Fuel efficiency / cost to own

Tariffs may raise sticker prices, but messaging focused on long-term savings helps balance that out. Emphasize fuel efficiency, reliability, and overall cost of ownership to help buyers justify their decision and feel confident in their investment.

Vehicle acquisition

Let shoppers know their trade-in is worth more right now. With used vehicle values rising due to tariff-driven demand, messaging that spotlights this value can motivate consumers to sell or trade sooner — and bring more inventory into your pipeline.

Ask us anything

Make it easy for shoppers to start a conversation with messaging that invites questions and highlights your team. In uncertain times, a warm, approachable tone makes your dealership feel like a trusted resource.

Make affordability easier to navigate

As shoppers face higher monthly payments and tighter lending terms, they need help understanding what they can actually afford. The dealerships that provide that clarity will be the ones that move deals forward.

Put affordability tools in customers’ hands

One of the most effective ways to help customers navigate tariff complexity is by putting affordability tools directly into the shopper’s hands. Give them the ability to estimate monthly payments based on their credit profile, the value of their trade-in, selected terms, and potential tax savings from the auto loan deduction.

And don’t make them wait. Whether through AI-powered chat, SMS, or live phone support, be available to answer real affordability questions — not just capture a lead — when they’re actively shopping on your website.

These tools don’t just improve the experience, they build trust. By allowing customers to self-qualify and make informed decisions, you’re removing guesswork and replacing it with transparency. And in a time of uncertainty, that makes all the difference.

Reallocate ad budget to real buyers

When economic pressure rises, so do digital advertising costs. That’s especially true on crowded platforms like Google, where more dealers are competing for fewer shoppers and paying more for every click. In a market like this, chasing general traffic isn’t just inefficient. It’s a direct threat to your ROI.

In fact, customer acquisition through third-party audience data is, on average, 19 times more expensive than using first-party data⁸— making it one of the least efficient ways to reach real buyers in today’s market.

Now is the time to shift your budget away from broad targeting and toward verified in-market shoppers — the people already searching, comparing, and shopping on Cars.com. With more than two decades of consumer behavior data and millions of monthly visits, Cars.com offers one of the most powerful first-party audience sets in automotive.

With Cars Commerce Media Network, you can activate that first-party audience across every major digital channel — search, social, display, and video — and surround your highest-value prospects with your brand, your inventory, and your message. Even as cookies disappear and third-party targeting becomes less reliable, Cars.com shopper data gives you a direct line to the people who are actively shopping in your market right now.

And because all of your media is unified through one platform, performance becomes easier to manage and optimize. Our AI-powered campaign tech continuously reallocates spend toward the creative, channels, and VINs driving actual results — not just impressions. 

In uncertain times, the smartest investment you can make is in media that doesn’t guess. It knows your audience — and knows exactly how to reach them again and again.

Source inventory from your service drive

Used inventory is scarce and expensive — but your service drive can solve both problems. Many customers don’t realize how tariffs and supply constraints have affected their vehicle’s value. Every service visit is a chance to educate them and start a trade-in conversation, especially with customers driving high-demand, high-value vehicles they may not realize are worth more than ever.

Now is also the time to make your Fixed Ops department a key part of your inventory strategy. With AccuTrade integrated into your service drive process, your advisors can offer instant appraisals and diagnostic scans that give customers clear, no-pressure insights into their vehicle’s current condition and trade-in value without disrupting the service experience.

This creates a low-friction handoff to your sales team and opens the door to more warm leads, more trades, and more opportunities to source inventory without going to auction.

Unlock new value from every profit center

When sales margins shrink, every other department needs to step up — and that includes F&I and your retail parts counter.

In the F&I office, customers may be more hesitant to add appearance packages or wheel and tire protection to already expensive deals. But products like GAP insurance, extended warranties, and pre-paid maintenance become even more essential when the cost of vehicle replacement climbs.

Even your retail parts counter has untapped potential, as shoppers searching for OEM components may be closer to buying or selling than you think. Cross-train your counter staff to ask a few deeper questions about a customer’s parts purchase to identify areas of opportunity for service R/O’s, vehicle acquisitions, or even a new car.