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Dealerships prepare to navigate Trump's auto industry tariffs that are now in effect

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NATIONAL CITY, Calif. (KGTV) — SAN DIEGO (KGTV) -- Another round of tariffs take effect in the U.S. this week -- the universal 10% tariff kicks in Saturday, the rest on April 9.

On Thursday, President Trump’s auto tariffs took effect, placing a 25% import tax on all foreign-made cars. Similar tariffs on car parts are set to take effect May 3.

Many auto dealerships said now is a good time to buy, since they believe the tariffs create uncertainty for both businesses and shoppers alike.

There are still a lot of questions about how auto prices will change, but experts said one thing is for sure: It will almost certainly make cars more expensive.

The rising costs could make big changes to San Diego’s car industry. The Port of San Diego said one out of every 10 cars that comes into the country gets imported through National City.

The new auto tariffs mean the average $50,000 new car would cost $62,500. And American car brands could get more expensive, too.

Starting May 3, tariffs will also be applied to auto parts like engines and transmissions, which are often shipped into the U.S. and then assembled for American cars.

Dealerships told ABC 10News it could take a few months before buyers start seeing prices go up, since the tariffs don’t impact cars already on the lots.

Many dealerships said they’ve been stocking up on supplies to prepare for what’s to come, but they still don’t know all the consequences of the new tariffs.

“There’s a tremendous amount of uncertainty in the marketplace right now. This time brings us back to the COVID prices where things elevated in terms of a price point due to the shortage of inventory and supply for the consumer,” said Eddie Dylan, General Sales Manager for Honor GMC. “However, in our humble opinion, marketplace will always discipline someone who’s not prepared.”

Analysts say the new tariffs could make a new car anywhere from $5,000 to $10,000 more expensive.

Economists say car repairs and insurance premiums could also get pricier, since replacement parts will be more expensive.