8:29 am, April 17, 2025
US consumers are unlikely to accept 25% price rises on imported cars from the UK and sales will fall as a result of Trump’s tariffs.
That’s the stark warning from National Automobile Dealers Association (NADA) president and CEO Mike Stanton.
Speaking exclusively to Car Dealer on the fringes of the New York International Auto Show, Stanton said despite Trump’s tariffs car dealers in the US were ‘optimistic’ – but there was still concern about how price rises would impact sales.
‘I do not think consumers are going to be able to absorb [25% price increases],’ he said.
‘Sales will go down and there will have to be a plan. We’re encouraged because I think that many of the affected manufacturers are talking directly with the administration and I think it’s a negotiation process.
‘It’s something that will be done one by one and we’ll see what comes out in the next 90, 120, 180 days.’
Trump slapped 25% tariffs on car makers bringing cars to the States.
Jaguar Land Rover (JLR) has paused shipments to the US in April while it works out what to do while other luxury car makers, including Bentley and Rolls Royce are assessing their options.
There are fears the tariffs could lead to job losses in the UK as factories cut back production due to falling sales.
On Tuesday, Trump raised hopes that automotive tariffs could be paused as car makers needed ‘a little bit more time’ to move manufacturing to the US, but it seems unlikely they’ll disappear for good.
Stanton, who runs NADA – the organisation that represents nearly 16,500 car dealers across the States – said its members had seen sales surge in March and April as consumers looked to snap up tariff-free cars on the ground.
In the States, franchised dealers hold large amounts of new car inventory so customers can walk on to their lots and drive away a new car almost immediately.
Stanton added: ‘It’s definitely been a very, very strong March and April looks good as well.
‘There is some concern on the horizon, but I think consumers are pulling ahead some of their purchases based on some of this concern.’
Stanton said car dealers have some ‘long term concern’ t00, but they were ‘optimistic’ about the immediate future.
‘This will eventually get worked out in a way that’s good for our industry.
‘This is a big, big industry. It’s key to the health of the overall American economy. And again, we’re confident, optimistic that we’ll probably go through some chop, but we’ll get through the other side.
‘I get dealer input every single day, and the vast majority, and I mean almost all, are very optimistic about the direction that not only their business is headed in right now, but the direction the country’s headed.’
