Tariffs of 25% on foreign cars went into effect on April 3, but Bruce Wilkins of Highlands Ranch expressed a sense of optimism as he browsed through Subarus at the Colorado Auto Show on Thursday.
“The prices are lower than I was expecting, across the board, for anything I would be interested in,” Wilkins remarked.
The auto show kicked off on Thursday and will continue through Sunday at the Colorado Convention Center in downtown Denver. In addition to considering vehicle features, gas mileage, battery range, and sticker prices, car buyers are now factoring in the potential impact of tariffs on vehicles imported into the U.S.
Just a few days prior, President Donald Trump suggested he might temporarily pause the auto tariffs. However, the levies on foreign parts within vehicles are scheduled to commence 30 days later. The Trump administration views taxation on foreign vehicles and parts as a strategic move to incentivize domestic car manufacturers to produce more of their products on U.S. soil.
Industry experts caution that heightened tariffs could lead to increased costs for buyers, potentially adding thousands of dollars to the price of a vehicle. The impact of impending tariffs has already influenced consumer behavior, contributing to an increase in consumer spending of 1.4% in March compared to February, according to the Commerce Department. Spending on cars, trucks, and auto parts surged by over 5% in March, as reported by National Public Radio.
Wilkins, who is contemplating replacing his 2012 Subaru, indicated he might wait a few months to make a decision. “I’m conscious that the price could go up, but it’s not going to force me to buy anything early,” he said.
Matthew Groves, president and CEO of the Colorado Auto Dealers Association, is advocating for dealerships to formulate a strategy to respond to the evolving tariff landscape. With deadlines still uncertain, Groves emphasized, “At the end of the day, we can’t control federal policy; we can control our response. So the longer we have to get ready, I think ultimately it will be a good thing.”
Despite this optimism, Groves acknowledged that car buyers are feeling confused and apprehensive about the potential implications of the tariffs. Different manufacturers and dealers are employing various strategies to navigate the situation.
“Some people are eating the cost of the tariff,” Groves said.
Additionally, some companies are opting to stockpile vehicles, while others are exploring the possibility of replacing foreign-made components with domestically produced parts. “Some are rebalancing their fleets because some models are more heavily impacted than others,” Groves mentioned.
According to Sean Sachdeva, manager for the Denver region at Ford, the company is relatively insulated from the tariff impacts as it assembles approximately 80% of its vehicles in the U.S. and has a larger domestic production footprint compared to other manufacturers.
“Tariffs have a wide-ranging impact across the industry, and there’s a lot we’re still studying, forecasting, and trying to understand about the specific impacts and working with the administration,” Sachdeva stated.
Ford is providing employee pricing to customers, aiming to instill confidence and offer some certainty in light of the current uncertainty in the industry.
“We are seeing a lot of customers making those purchase decisions prior to the impact of tariffs. We’ve seen healthy sales and demand,” said Sachdeva.
As for the objective of enhancing auto manufacturing within the U.S., Groves articulated that establishing a new factory could take three to five years, with recruitment for such facilities potentially taking even longer.
“One of the complicating factors is if you’re building your factory now, you need all that specialized equipment,” Groves explained.
Some of this equipment might also be subject to tariffs. He predicted that a realistic timeline for vehicles to start rolling off production lines would be five to seven years.
“If the plan is to onshore manufacturing, great. I hope it works,” Groves expressed.
However, he cautioned that there will likely be a “sort of donut hole” with increasing prices before domestic manufacturing is able to ramp up.
More than 20 manufacturers are showcasing their 2025 models at the Colorado Auto Show. In addition to vehicle displays, the event features an indoor track where attendees can experience the cars firsthand and a new Colorado Adventure area highlighting recreational vehicles, boats, and other outdoor vehicles.
image source from：https://www.denverpost.com/2025/04/18/colorado-car-show-tariffs-manufacturing-consumers/
