Tariffs of 25% on foreign cars kicked in April 3, but Bruce Wilkins of Highlands Ranch said he was “pleasantly surprised” by the prices as he looked at Subarus on display 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 said.
The auto show opened Thursday and runs through Sunday at the Colorado Convention Center in downtown Denver. Besides a vehicle’s features, gas mileage or battery range and sticker price, car buyers are figuring in the potential impact of tariffs on cars imported to the U.S.
Earlier this week, President Donald Trump indicated he might temporarily pause the auto tariffs. Levies on foreign parts in vehicles were set to start 30 days later. The Trump administration sees taxing foreign vehicles and parts as a way to spur car makers to manufacture more of their products in the U.S.
Industry experts warn that increased tariffs could cost buyers thousands of dollars more for a car. People trying to beat the tariffs helped drive consumer spending up by 1.4% in March compared to February, the Commerce Department said. Spending on cars, trucks and auto parts increased by more than 5% in March, National Public Radio reported.
Wilkins, who is thinking about replacing his 2012 Subaru, said he might make a move in a few months. “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, said he is encouraging dealerships to prepare a plan to respond to the tariffs as the deadlines remain in flux.
“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,” Groves said.
But Groves said he realizes car buyers are confused and anxious about what the tariffs will mean for them. Manufacturers and dealers are using various strategies to approach the situation.
“Some people are eating the cost of the tariff,” Groves said.
Other companies are stockpiling vehicles. Some are looking at replacing foreign-made parts with parts made in the U.S. “Some are rebalancing their fleets because some models are more heavily impacted than others,” Groves said.
Ford is more insulated than other manufacturers because the company assembles about 80% of its vehicles in the U.S. and produces more vehicles overall in the U.S. than other manufacturers, said Sean Sachdeva, the company’s manager for the Denver region.
“Tariffs have a wide ranging impact across the industry and there’s a lot we’re still studying, forecasting, trying to understand about the specific impacts and working with the administration,” Sachdeva said.
Ford is offering employee pricing to customers, Sachdeva said, to foster confidence and provide some certainty “given all the uncertainty throughout the industry right now.”
“We are seeing a lot of customers making those purchase decisions prior to the impact of tariffs. We’ve seen healthy sales and demand,” Sachdeva said.
As for the goal of boosting auto manufacturing in the U.S., Groves said it could take three to five years for a company to build a new factory.
“And trying to hire for that facility could take even longer,” Groves added. “One of the complicating factors is if you’re building your factory now, you need all that specialized equipment.”
And some of that equipment could be subject to tariffs. A realistic timeframe for the cars to start rolling down the line is five to seven years, Groves said.
“If the plan is to onshore manufacturing, great. I hope it works,” Groves said.
But “there’s going to be a sort of donut hole” with higher prices before domestic manufacturing increases, he said.
More than 20 manufacturers are displaying their 2025 models at the auto show. There’s an indoor track where people can take cars for a spin. A new feature is a Colorado Adventure area featuring recreational vehicles, boats and other outdoor vehicles.
